Different equity risk premia numbers

Assignment Help Finance Basics
Reference no: EM131209259

If the rate of return on the S&P 500 index was 23% for 2009, and the risk-free rate at the end of 2009 was 1%, calculate the equity risk premium for 2009.

Recalculate the equity risk premium using 1981 data, when the risk free rate was 15% and the S&P 500 index return was MINUS 10%.

What are the implications of different equity risk premia numbers for different time periods? HINT: When you use the CAPM you mus enter an equity risk premium. Therefore how do you do that accurately when data for different years produce different equity risk premia.

Reference no: EM131209259

Analyzing the brake situation

You spent $500 last week fixing the transmission in your car. Now, the brakes are acting up and you are trying to decide whether to fix them or trade the car in for a newer

Strategic financial tool-bankruptcy

Write down the ethical implications of corporations such as United Airlines and General Motors which utilize bankruptcy as a strategic financial tool to minimize their pensi

Drawing on current business publications

Drawing on current business publications, find some updated facts for each case that support this them.Compare and contrast McDonald's strategies in China with those of W

How much responsibility should a corporate officer have

Is it ever appropriate in the business world to hold a superior liable for a subordinate's criminal action (as may often be the case in a military structure), or should we e

What is the profit or loss associated with copper

Gold sells for $325 per ounce and copper sells for $0.85 per pound. Allocate the joint costs using relative weight. With these costs, what is the profit or loss associated w

Briefly describe one way the us financial markets impact

Briefly describe one way the U.S. financial markets impact the economy, one way the U.S. financial markets impact businesses, and one way the U.S. financial markets impact i

What is the value of the interest rate swap to the party

What is the value of the interest rate swap to the party that receives the fixed-rate payment and pays the floating-rate payment? What is the value of the same interest rate

Analyzing two mutually exclusive projects

A company is analyzing two mutually exclusive projects, S and L, whose cash flows are shown below. Project S: -1,100 (Year 0), 1000 (Year 1), 350 (Year 2), 50 (Year 3). Proj


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd