What is the best estimate of the future annual returns

Assignment Help Financial Econometrics
Reference no: EM13334710

Over a 38-year period an asset had an arithmetic return of 12.40 percent and a geometric return of 10.30 percent.

Using Blume's formula, what is your best estimate of the future annual returns over 6 years? 10 years? 19 years?

Reference no: EM13334710

Questions Cloud

What is the advantage of the advice of the securities firm : Explain the dilemma for Denton Company. What is the advantage of following the advice of the securities firm. What is the disadvantage. Is the securities firm's incentive to place the shares aligned with that of Denton Company.
Define what is the molar solubility of pbi2 in water : What is the molar solubility of PbI2 in water. For PbI2, Ksp=7.9x10-9. You may assume that the ions do not form ion pairs in solution. Give your answer in moles per litre, accurate to two significant figures.
Compute the voltage of the generator : A series RCL circuit includes a resistance of 271 ?, an inductive reactance of 661 ?, and a capacitive reactance of 425 ?. What is the voltage of the generator
What is the gravitational torque on the objects : Two thin beams are joined end-to-end to make a single object. The left beam is 11.9 kg and 1.00 m long and the right one is 41.1 kg and 2.00 m long. What is the gravitational torque on the objects about an axis through its left end
What is the best estimate of the future annual returns : Over a 38-year period an asset had an arithmetic return of 12.40 percent and a geometric return of 10.30 percent. Using Blume's formula, what is your best estimate of the future annual returns over 6 years
Fleshing out the body of the business plan : Business description: This section requires fleshing out the body of the business plan including material from your revised preliminary proposal with more data, charts, appendices. Include a description of the proposed form organization, either a par..
Explaining how you benefit from your use of the internet : Compose a paragraph explaining how you benefit from your use of the Internet. Make sure it is practical and related to work, school or personal life.
What is the new reactance of the capacitor : A 33.0-mH inductor has a reactance of 2.10 k?. What is the new reactance of the capacitor
Explain what is the molar solubility of pbi2 in water : What is the molar solubility of PbI2 in water. For PbI2, Ksp=7.9x10-9. You may assume that the ions do not form ion pairs in solution.

Reviews

Write a Review

Financial Econometrics Questions & Answers

  Should accounting rules be changed to reflect capitalize

one of the advantages of leasing voiced in the past is that it kept its liabilities off the balance sheet, thus making it possible for a firm to obtain more leverage than it otherwise could have.

  Determine what is the portfolios beta in a stock

Your investment club has only two stocks in its portfolio. $20,000 is invested in a stock with a beta of 0..7, and $35,000 is invested in a stock with a beta of 1.3. What is the portfolio's beta

  Determine how much will ashleys insurer pay

ashley has a major medical health insurance policy with a $2 million lifetime limit. The policy has a $500 calendar year deductible and a 20 percent coinsurance clause.

  What is bonds yield to maturity paid semiannually

The bonds have a face value of $1,000 and an 12% coupon rate, paid semiannually. The price of the bonds is $850. The bonds are callable in 5 years at a call price of $1,050.

  Determine what is the price of the stock today

Thirsty Cactus Corp. just paid a dividend of $1.20 per share. The dividends are expected to grow at 15 percent for the next eight years and then level off to a growth rate of 5 percent indefinitely.

  Determine what is the present value of an investment

An investment will pay you $75,000 in nine years. Assume the appropriate discount rate is 6 percent compounded daily. What is the present value

  How to show the companys equity after the issue

Book value of common stockholders' equity of Dow Chemical, December 31, 2010 (figure in billions). Common Shares ($1.5 par value per share) $2.939; Additioan paid in capital $2.294; retained earnings 17.744;

  Determine what is the equity after 15 years

A couple has decided to purchase a $120000 house using a down payment of $18000. They can amortize the balance at 10% over 20 years. a) What is their monthly payment

  Determine minimum variance portfolio with expected return

Stock B has expected return of 16% and standard deviation of 35%. Stock C has expected return of 12% and standard deviation of 22%. Their returns have correlation of 0.15.

  Find what is the size of each deposit needed to make

You estimate that you will need $840 thousand in 30 years to buy some cybernetic body enhancements, including infrared vision, retractable claws, and expanded brain storage capacity.

  How much do need to have in the bank account today

Beginning three months from now, you want to be able to withdraw $2,100 each quarter from your bank account to cover college expenses over the next four years.

  Estimate mary taxable income-tax liability and tax refund

Mary Watson is 24 years old and single, lives in an apartment, and has no dependents. Last year she earned $45,000 as a sales assistant for Focused Business Analytics: $3,910 of her wages was withheld for federal income taxes.

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