"The average annual return on the Standard and Poor's 500 Index from 1986 to 1995 was 17.6 percent. The average annual T-bill yield during the same period was 9.8 percent. what was the market risk during these 10 years?
Average annual return stated as 17.6% |
T-bill yield which is the risk free rate is 9.8% |
Market Risk = 17.6% - 9.8% |
Market Risk is 7.80% |
"The average annual return on the Standard and Poor's 500 Index from 1986 to 1995 was 17.6 percent. The average annual T-bill...
The average annual return on the S&P 500 Index from 1986 to 1995 was14.55 percent. The average annual T-bill yield during the same period was 3.00 percent. What was the market risk premium during these ten years? (Round your answer to 2 decimal places.) Average market risk premium
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The average annual return on an Index from 1996 to 2005 was 19.31 percent. The average annual T-bill yield during the same period was 3.91 percent. What was the market risk premium during these ten years? (Round your answer to 2 decimal places.)
Risk Premium If the annual return on the S&P 500 Index was 11.40 percent. The annual T-bill yield during the same period was 5.00 percent. What was the market risk premium during that year? Multiple Choice 5.00 percent 16.40 percent 6.40 percent 0 11.40 percent
Part 1: The Vanguard 500 (ticker: VFINX) is an index mutual fund that invests in the Standard & Poor's 500 (500 largest US public companies). On June 19, 2020 a share in this fund cost $287.20. Ten years ago, this same fund's share price was $99.60. Calculate the annual compounded return on this fund over that 10 year period. Part 2: Assuming the average annual compounded return you calculated above for the last 10 years, estimate what the Vanguard 500...
an Assume o 1213. 30. Standard & Poor's 500 From 1871 through 2016, the mean return of the Standard & Poor's 500 was 10.72%. A random sample of 38 years is selected from this population. What is the probability that the mean return for the sample was between 9.1% and 0.3%? Assume o = 18.60%. 31 Childhood Asthma Prevalence
Average Annual Rates Standard Deviation T-Bills Inflation Real T-Bill T-Bills Inflation Real T-Bill All months 3.46 2.10 0.56 3.12 4.07 3.81 First half 1.04 1.68 − 0.29 1.29 5.95 6.27 Recent half 4.45 3.53 0.90 3.11 2.89 2.13 (1926-2016) Market Index Big/ Growth Big/ Value Small/ Growth Small/ Value Mean excess return (annualized) 0.83 7.98 11.67 8.79 15.56 Standard deviation (annualized) 18.64 18.50 24.62 26.21 28.36 Suppose that the inflation rate is expected to be 2.10% in the near future...
10. The Standard & Poor's 500 Index: a. gives more weight to large companies than small companies. b. actually includes approximately 580 of the largest corporations in the U.S. c. is a price-weighted index. d. assigns equal weight to all the prices of all the stocks in the index. 11. The Nasdaq Composite Index is: a. made up of over 50,000 firms traded on the Over-the-Counter market. b. a price-weighted index. c. made up of mainly newer firms, and heavily...
Time Value of Money Part 1: The Vanguard 500 (ticker: VFINX) is an index mutual fund that invests in the Standard & Poor's 500 (500 largest US public companies). On June 19, 2020 a share in this fund cost $287.20. Ten years ago, this same fund's share price was $99.60. Calculate the annual compounded return on this fund over that 10 year period. Part 2: Assuming the average annual compounded return you calculated above for the last 10 years, estimate...
1. Consider historical data showing that the average annual rate of return on the S&P 500 portfolio over the past 85 years has averaged roughly 8% more than the Treasury bill return and that the S&P 500 standard deviation has been about 20% per year. Assume these values are representative of investors' expectations for future performance and that the current T-bill rate is 5%. Calculate the expected return and variance of portfolios invested in T-bills and the S&P 500 index...