Earn on small-company stocks over the next several years

Assignment Help Financial Management

Reference no: EM131545876

Based on the past 88 years, the inflation rate averaged 3.0 percent and the U.S. Treasury bill yield was 3.5 percent, and the historical risk premium on small-company stocks was 13.2 percent. If these averages hold, what nominal rate of return should you expect to earn on small-company stocks over the next several years?

19.7 percent

15.5 percent

13.5 percent

16.7 percent

13.7 percent

Reference no: EM131545876

Questions Cloud

What is the company total market value of debt : What is your best estimate of the aftertax cost of debt? What is the company’s total market value of debt?

Income inequality affect the domestic or global economy : Reflecting on the circular flow, how does income inequality affect the domestic or global economy?

Waiting for the state demographers office : Regarding the Lorenz curve and you are waiting for the state's demographers office, how would you (1) describe and explain a Lorenz curve

Antitrust policy and regulation : Regarding the definition of microeconomics, how would you express the definition as it relates to antitrust policy and regulation?

Earn on small-company stocks over the next several years : what nominal rate of return should you expect to earn on small-company stocks over the next several years?

Develop a list of entrepreneurial opportunities outside : Develop a list of entrepreneurial opportunities outside the confines of the company you selected.Select one entrepreneurial opportunity from your list to assess

What is the appropriate supply chain strategy for a product : What is the appropriate supply chain strategy for a particular product? Why is it that, in some cases these new business models fail, while, in other cases.

How did eastern native american tribes differ from european : When the Europeans arrived in America they found a land populated by numerous different peoples. In this activity you will learn more about these Native people.

Apply the mpc framework to a college setting : Apply the MPC framework to a college setting. In particular, identify the front end, engine, and back end.

User Account

All Pages