What was your approximate real rate of return

Assignment Help Financial Management
Reference no: EM131348050

You earned a nominal rate of return equal to 11.70% on your investments last year. The annual inflation rate was 1.70%.

a. What was your approximate real rate of return? (Round your answer to 2 decimal places.)

Approximate real rate of return            %

b. What was your exact real rate of return? (Round your answer to 2 decimal places.)

Real rate of return            %

Reference no: EM131348050

Questions Cloud

Standard deviation of return on your clients portfolio : You manage an equity fund with an expected risk premium of 10% and a standard deviation of 14%. The rate on Treasury bills is 6%. Your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a T-bill money market fund. Wh..
How supply chain of company contribution to customer service : Describe how the supply chain of this company contributions to customer service levels. Describe inventory control practice and uses of technology within the organization (ERP).
Determine exhaust temperature and coefficient of performance : If this gas expands from 70.0°F at 100. psia to atmospheric pressure, determine the exhaust temperature and the coefficient of performance of this system if the compressor has an isentropic efficiency of 88.0%.
What is the maximum amount bank a : Bank A has checkable deposits of $150 million, vault cash equaling $2 million and deposits at the Fed equaling $16 million. If the required reserve rate is ten percent what is the maximum amount Bank A could lend? Please show your work
What was your approximate real rate of return : You earned a nominal rate of return equal to 11.70% on your investments last year. The annual inflation rate was 1.70%. What was your approximate real rate of return? What was your exact real rate of return?
Ground the theory in the current research available : Create a literature review, incorporating each of your references (minimum of five), tying them to each other and to the thesis of your project in a single narrative.
What bundle does the consumer choose : Originally, px = 1, py = 2 and m = 1. What bundle does the consumer choose, and what is his utility from this bundle? The price of good x then rises to 3. What bundle does the consumer choose after the price change, and what is his utility from this..
Computing one-way between-subjects anova : Which of the following is an assumption for computing a one-way between-subjects ANOVA?
What did you do or say to clarify the expectations : Describe a situation where you recognized a need to communicate clear expectations for ethical practice. How did you recognize that expectations had to be clarified? What did you do or say to clarify the expectations?

Reviews

Write a Review

Financial Management Questions & Answers

  Stock with the highest standard deviation of return

The Green Bay Packers are the only publicly owned NFL team. The stock in this team would have a great deal of systematic risk. The stock with the highest standard deviation of return should earn the highest rate of return.

  What is the expected rate of inflation

Suppose that the nominal risk-free rate of return in the U.S is 8% and inflation is expected to be at 7%. In Australia the nominal interest rate is 14%. What is the expected rate of inflation in Australia if the Fisher Effect holds? Assume a firm has..

  What is the firms net income

A firm has total assets of $280,000, a total asset turnover rate of 1.6, a debt-equity ratio .4, and a return on equity of 13.25 percent. What is the firm's net income?

  Exercise price and expiration date as call option

The current price of a stock is $33, and the annual risk-free rate is 7%. A call option with a strike price of $32 and 1 year until expiration has a current value of $7.20. What is the value of a put option written on the stock with the same exercise..

  How old will your son be when he receives the money

You decide you want your child to be a millionaire. Today you had a son an deposited $50,000 in an investment account that earns 8.5% compounded quarterly. The money in the account will be distributed to your son whenever the total reaches $1,000,000..

  Health care organizations capital projects analysis

Explain the Time Value of Money and give two examples of specific use/application in a health care organization's capital projects analysis, accounting for dollar value differences over time.

  What do you think the ex-dividend price will be

Miller, Inc., has declared a $6.30 per share dividend. Suppose capital gains are not taxed, but dividends are taxed at 10 percent. New IRS regulations require that taxes be withheld at the time the dividend is paid. Miller sells for $114 per share, a..

  Main cost of the operation of commercial banks

Which of the following is the main cost of the operation of commercial banks?

  Find the present value of the following ordinary annuities

Find the interest rate (or rates of return) for each of the following situations. Find the present value of the following ordinary annuities. The real risk-free rate of interest is 3%. Inflation is expected to be 1% this year and 6% during the next 2..

  Subtract the loan payment from the lease payment

Sutton Corporation, which has a zero tax rate due to tax loss carry-forwards, is considering a 5-year, $6,000,000 bank loan to finance service equipment. The loan has an interest rate of 10% and would be amortized over 5 years, with 5 end-of-year pay..

  What is the 90 day forward rate of the pound

The spot rate of British pound is quoted at $1.49. The 90-day forward rate exhibits a 2% discount. What is the 90-day forward rate of the pound.

  The hamptons home of a famed socialite hits the market

“Before there was Paris Hilton, there was Consuelo Vanderbilt Balsan – a Gilded Age heiress and socialite, renowned for her beauty and wealth. Now Ms. Balsan’s Hamptons home is currently worth $28 million. Calculate the annual compound growth rate of..

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