Assume large-company stocks returned 118 percent on average

Assignment Help Finance Basics
Reference no: EM13569578

Assume large-company stocks returned 11.8 percent on average over the past 75 years. The risk premium on these stocks was 7.9 percent and the inflation rate was 3.2 percent. What was the average nominal risk-free rate of return for those 75 years?

Reference no: EM13569578

Questions Cloud

Discuss the compensation packages for accounting : discuss the compensation packages for accounting professionals. is the compensation commensurate with the
When pete uses a distributor to sell additional pet houses : petes pet products is a sole proprietorship owned by pete thompson. the store provides a full-line of pet products
Binge eating disorder is a diagnosis not included in the : binge eating disorder is a diagnosis not included in the main text of dsm-iv but is proposed to be included in the up
Iguana inc manufactures bamboo picture frames that sell for : iguana inc. manufactures bamboo picture frames that sell for 22 each. each frame requires 3 linear feet of bamboo which
Assume large-company stocks returned 118 percent on average : assume large-company stocks returned 11.8 percent on average over the past 75 years. the risk premium on these stocks
So one of the central questions in american crime policy is : i was trained in criminology by a generation of professors who thought that criminals were the product of rotten
The required return on stock 13 and sells currently for 76 : eva corp. experience rapid growth. dividends are expected togrow at 25 per year during the next three years 15
Assume you hold a well-balanced portfolio of common stocks : assume you hold a well-balanced portfolio of common stocks. under what conditions might you want to use a stock-index
Given the following scenario on what date would you : given the following scenario on what date would you recognize revenue if preparing financials under u.s. gaap? would

Reviews

Write a Review

Finance Basics Questions & Answers

  What strategy results in an arbitrage profit

A 1-month European call option on a non-dividend-paying stock is currently selling for $2.50. The stock price is $50, the strike price is $47, and the risk-free rate is 6%. What strategy results in an arbitrage profit?

  If you invest 100 a year for 20 years at 7 annual interest

1. why do we say money has time value?2. why is it important for business managers to be familiar with time value of

  What is the conversion premium

The company's common stock is selling for $18.25 per share. The bond is selling for $970. 1. What is the conversion value? 2. What is the conversion premium?

  Option contracts to minimize risk

Benefit from using option contracts to minimize risk.

  Your response should be at least 200 words in length for

1.what are the characteristics of a mortgage that affect the interest rates and the characteristics that affect the

  What is the total amount paid by the corporation

A U.S. corporation has purchased currency call options to hedge a 70,000 pound payable. The premium is $.02 and the exercise price of the option is $.50. If the spot rate at the time of maturity is $.65, what is the total amount paid by the corporati..

  Diversification has enormous value to investors yet

diversification has enormous value to investors yet opportunities for diversification should not sway capital

  What is the primary thing that distinguishes an operating

what is the primary thing that distinguishes an operating expense from a capital

  What will be your monthly payment

Suppose Capital One is advertising a 60-month, 5.75% APR mortorcycle loan. If you need to borrow $8200 to purchase your dream harley davidson, what will be your monthly payment?

  Airjet best parts inc has decided to take 6950000 loan

the company needs to finance 8000000 for a new factory in mexico. the funds will be obtained through a commercial loan

  Computation of the projects free cash flows

Computation of the projects free cash flows and It has gathered the following information on each of these machines

  What unique problems do couples with a wide age gap face

What unique problems do couples with a wide age gap face as they plan for retirement What are some solutions to the situation What should be the investment strategy

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