What was the average real return on crash-n-burns stock

Assignment Help Financial Management
Reference no: EM13765792

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 3 percent, -11 percent, 27 percent, 21 percent, and 14 percent. The average inflation rate over this period was 3.9 percent and the average T-bill rate was 5 percent.

What was the average real return on Crash-n-Burn’s stock?

What was the average nominal risk premium on Crash-n-Burn’s stock?

Reference no: EM13765792

Questions Cloud

Compute the correlation coefficient of the two return series : Compute the covariance of the two return series. Compute the correlation coefficient of the two return series. Compute the risk of the portfolio.
What is the total profit : Its average fixed costs are $50. Its average variable costs are $25. What is the total cost (TC) of producing 1,000 units of output (Q)? If the price (P) of the good is $100 what is the total revenue? What is the total profit?
Create charts to illustrate data : Courtyard Medical Plaza (CMP) is a full-service medical office complex providing customers with a variety of medical services in one location. For this project you create charts to illustrate data about the number of procedures performed
Write about an event that you remember vividly : Write about an event that you remember vividly, a topic that has universal appeal. Build your essay around your point. The point will be the thesis of your essay.
What was the average real return on crash-n-burns stock : You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 3 percent, -11 percent, 27 percent, 21 percent, and 14 percent. The average inflation rate over this period was 3.9 percent and the average T-bill rate w..
How do firms benefit from economies of scale : How do firms benefit from economies of scale - What might be some potential disadvantages of being part of a Hilton Hotels and Resorts?
What is the variance of the returns on rtf : If the economy booms, RTF, Inc. stock is expected to return 10 percent. If the economy goes into a recessionary period, then RTF is expected to only return 2 percent. The probability of a boom is 66 percent while the probability of a recession is 34 ..
New type of exercise shoe : Isabel invents a new type of exercise shoe, which she calls the "Super Soul." To protect the name of her product, Isabel should get a
Expected return on the market-risk-free rate of return : The stock of Big Joe's has a beta of 1.66 and an expected return of 13.40 percent. The risk-free rate of return is 5.9 percent. What is the expected return on the market?

Reviews

Write a Review

Financial Management Questions & Answers

  Assume no taxation and perfect capital markets

Sims Corp. will buy back 900 of its 2500 shares outstanding. The return on equity before the buy-back is 14%. The debt-to-equity ratio before the buy-back is 1. Also, the company plans to keep a constant debt level, with an interest rate of 3%. Assum..

  Eoq a company buys 1 00000 units of material called m every

a company buys 1 00000 units of material called m every month. order costs are rs. 200 per order and carrying costs are

  1 identify and explain three types of start ups firms give

1 identify and explain three types of start ups firms. give a illustration of one you have dealt with.2 what is a

  Current debt-equity ratio-risk level of project

Kelly's uses the firm's WACC as the required return for some of its projects. For other projects, the firms uses a rate equal to WACC plus 1 percent, while another set of projects is assigned rates equal to WACC minus some amount. Which one of the fo..

  Some lenders charge an up-front fee on a loan

Some lenders charge an up-front fee on a loan, which is subtracted from what the borrower receives. This is typically described as "points" (where one point equals 1% of the loan amount). The federal government requires that this be accounted for in ..

  Long-term investment projects require a thorough

long-term investment projects require a thorough understanding of all attributes of doing business in that country

  Is it possible for a firm to have too much cash

Is it possible for a firm to have too much cash? Why would shareholders care if a firm accumulates large amounts of cash? What options are available to a firm if it believes it has too much cash? How about too little?

  Expected dividend and growth in dividends

Messman Manufacturing will issue common stock to the public for $40. The expected dividend and growth in dividends are $3.50 per share and 3%, respectively. If the flotation cost is 9% of the issue's gross proceeds, what is the cost of external equit..

  Calculate earnings per share

Beckett, Inc., has no debt outstanding and a total market value of $140,000. Earnings before interest and taxes, EBIT, are projected to be $32,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 12 pe..

  Dividend provided an investor with a return

A stock that went from $43 per share at the beginning of the year to $47 at the end of the year and paid a $3 dividend provided an investor with a return of ____%: (Keep two decimals)

  Constant annual dividend

Greener Grass Co. pays a constant annual dividend of $1 a share and has 1,000 shares of common stock outstanding. The company: must always show a current liability on its balance sheet of $1,000 for dividends payable.

  Horizontal analysis mary lynn corporation has been

horizontal analysis. mary lynn corporation has been operating for several years. selected data from the 20x1 and 20x2

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