The Costaguanan stock market provided a rate of return of 98%. The inflation rate in Costaguana...
The Costaguanan stock market provided a rate of return of 98%. The inflation rate in Costaguana during the year was 86%. In the Ruritania, in contrast, the stock market return was only 15%, but the inflation rate was only 3%. Calculate the real rate of return for both the Costaguana and the Ruritania stock markets.
a)
| Rate of Return | |
| Costaguana | |
| Ruritania |
b) Which country’s stock market provided the higher real rate of return?
Homework Answers
1.
Costaguana=1.98/1.86-1=6.4516%
Ruritania=1.15/1.03-1=11.6505%
2.
Ruritania's stock market provided the higher real rate of
return
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The Costaguanan stock market provided a rate of return of 98%.
The inflation rate in Costaguana...
The Costaguanan stock market provided a rate of return of 97%. The inflation rate in Costaguana...
The Costaguanan stock market provided a rate of return of 97%. The inflation rate in Costaguana during the year was 83%. In Ruritania, in contrast, the stock market return was only 12%, but the inflation rate was only 2%. a. Calculate the real rate of return for both the Costaguana and the Ruritania stock markets. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
The Costaguanan stock market provided a rate of return of 96%. The inflation rate in Costaguana...
The Costaguanan stock market provided a rate of return of 96%. The inflation rate in Costaguana during the year was 80%. In the United States, in contrast, the stock market return was only 16%, but the inflation rate was only 2%. Calculate the real rate of return for both the Costaguana and the United States stock markets. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Real rate of return Costaguana United States...
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The Costaguanan stock market provided a rate of return of 96%. The inflation rate in Costaguana during the year was 80%. In the United States, in contrast, the stock market return was only 16%, but the inflation rate was only 2%. Calculate the real rate of return for both the Costaguana and the United States stock markets. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Real rate of return Costaguana United States...
Assuming a 1-year, money market account investment at 2.09 percent (APY), a 0.86% inflation rate, a 25 percent marginal tax bracket, and a constant $40,000 balance, calculate the after-tax rate of return, the real return and the total monetary return. What are the implications of this result for cash management decisions? Assuming a 1-year, money market account investment at 2.09 percent (APY), a 25 percent marginal tax bracket, and a constant $40,000 balance the after-tax rate of return is 1.57...
n = 21
(Question 3) If the inflation rate is (6+2n)% per year and the market interest rate is known to be (15+2n)% per year. What is the implied real interest rate (inflation-free interest rate) in this inflationary economy?
1. (15) Annual inflation is 4.29% and account market interest rate is 9.62%. What is the real rate of return on the account? Answer
show the steps plz.
The expected return on the market is 15.35 percent, the inflation rate is 2.53 percent, and the risk-free return is 3.19 percent. Refresher stock is currently priced at $59.83 per share and is expected to pay its next annual dividend in 1 year. Refresher's next dividend is expected to be $2.73 per share and the stock is expected to be priced at $64.89 in 1 year. What is Refresher's beta? Round your answer to 2 decimal...
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