What is the security equilibrium rate of return

Assignment Help Financial Management

Reference no: EM131587427

A particular security’s default risk premium is 4 percent. For all securities, the inflation risk premium is 2.50 percent, and the real risk-free rate is 3 percent. The security’s liquidity risk premium is .75 percent and the maturity risk premium is 1.20 percent. If the security does not have any special covenants, what is the security’s equilibrium rate of return.

Reference no: EM131587427

Questions Cloud

Describe some real life applications : Give examples of real-life problems involving geometry.

Current rate be on three year treasury securities : what should the current rate be on 3-year Treasury securities.

Create a java implementation checkplagiarism : Create a java implementation CheckPlagiarism.java that takes 3 commandline arguments - the corpus filename, the target filename and the length of the match

Define rhetoric is the counterpart of dialectic : Aristotle believed that "rhetoric is the counterpart of dialectic." Outline Aristotle's definition of rhetoric as it relates to dialectic

What is the security equilibrium rate of return : what is the security’s equilibrium rate of return.

Calculate expected npv for minimum ror : Calculate Expected NPV for minimum ROR 16% on buying and drilling an oil lease with these estimated costs:

What measurement issues are illustrated by this discussion : Research the measurement requirements for inventories held for sale, inventories held for production, and long-term debt

Administrative information systems master plan : Right. As you know, the administrative information systems master plan will be complete within the next three months. Assuming the executive committee approves.

Minimum of two sentences the results obtained in cash budget : Analyze in a minimum of two sentences the results obtained in the Cash Budget.

User Account

All Pages