What is the real rate of return of large-cap stocks

Assignment Help Financial Management
Reference no: EM13726083

Large- Cap stocks had the nominal rates of return of 13.20 percent. The rate of inflation during the last year was 4.07 percent. What is the real rate of return of large-cap stocks?

Round the answer to two decimal places in percentage form

Reference no: EM13726083

Questions Cloud

What annual rate of return is earned : What annual rate of return is earned on a $3,200 investment when it grows to $6,900 in twenty years?
Use for measuring the risk of a random variable : The best measure to use for measuring the risk of a random variable would be:
Create a portfolio with an expected return : You have $258,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return of 14.3 percent, and Stock L, with an expected return of 10.9 percent.
Money by investing in common stock : Suppose the returns on large-company stocks are normally distributed. Also suppose large-company stocks had an average return of 12% and a standard deviation of 26.2%.
What is the real rate of return of large-cap stocks : Large- Cap stocks had the nominal rates of return of 13.20 percent. The rate of inflation during the last year was 4.07 percent. What is the real rate of return of large-cap stocks?
What is principal outstanding after the first loan payment : John Doeber borrowed $150,000 to buy a house. His loan cost was 6% and he promised to repay the loan in 15 equal annual payments. What is the principal outstanding after the first loan payment?
Future value of this cash flow pattern at end of year five : You have been offered the opportunity to invest in a project that will pay $2,726 per year at the end of years one through three and $5,219 per year at the end of years four and five. These cash flows will be placed in a saving account that pays 9.49..
Estimate that a passive portfolio invested to mimic : Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 27%. The T-bill rate is 7%. You estimate that a passive portfolio invested to mimic the S&P 500 stock index yields an expected rate of return ..
Manage a risky portfolio with an expected rate of return : Assume that you manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 34%. The T-bill rate is 5.5%. Your risky portfolio includes the following investments in the given proportions: Stock A 32 % Stock B 36 % Stoc..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the amount of the operating cash flow

Paul's Boats has sales of $680,000 and a Net Profit Margin of 5.2 percent. The annual depreciation expense is $74,000. The tax rate is 34 percent. What is the amount of the operating cash flow if the company has no long-term debt?

  Financial statement analysis project -- a comparative

financial statement analysis project -- a comparative analysis of kohls corporation and j.c. penney corporationusing

  Price and yield problem

An 6% semi-annual coupon bond matures in 5 years. The bond has a face value of $1,000 and a current yield of 6.8307%. What is the bond's price? Round your answer to the nearest cent.

  Company a has days sales outstanding ratio

Company A has a higher day's sales outstanding ratio than Company B. Therefore,

  What is the modified internal rate of return for the project

A company has an opportunity to invest in a project that is expected to result in after-tax cash flows of $18,000 the first year, $20,000 the second year, $23,000 the third year, -$8,000 the fourth year, $30,000 the fifth year, $36,000 the sixth year..

  Maintenance and creation of economic value

Each financial decision made by a corporate manager can be evaluated by its direct impact on the corporation's stock price.

  Standard sinking fund method repayment at rate

Show that the borrower’s periodic outlay for a standard sinking fund method repayment at rate j is larger than the level outlay under amortization method with the interest rate i, if i > j

  Evaluating value of long-term elements of capital structure

Determine the value of the long-term elements of the capital structure, and find out the target percentages for the optimal capital structure. Carry weights to 4 decimal places.  Evaluate the retained earnings break point.

  Constant growth valuation formula

Which of the following conditions must hold true for eth constant growth valuation formula to be useful and give meaningful results?

  Organisations behaviour is guided by financial data in the

organisations behaviour is guided by financial data. in the short term such data will help determine operational

  Discussion on the different bond features

Please provide a thorough discussion on the different bond features someone might consider pref. For example, some bonds are tax free (municipal bonds), some are insured. Of course there is a trade off between risk and return. Do you think that there..

  Assessment for the interim assessment of international

assessment for the interim assessment of international financial managementyou are required to prepare a report of 2500

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