What was your real rate of return based on fisher formula

Assignment Help Financial Management
Reference no: EM13911660

Last year, you earned 11.67 percent on your investments. During that time period, inflation averaged 6.4 percent. What was your real rate of return based on the Fisher formula?

Reference no: EM13911660

Questions Cloud

Under what conditions cpa accept confirmation of securities : Under what conditions would the CPA accept a confirmation of the securities on hand from the custodian in lieu of inspecting and counting the securities?
Way of increasing leverage and thus the risk of default : Nearly one in 10 mortgage borrowers in 2005 and 2006 took out “option ARM” loans, which meant they could choose to make payments so low that their mortgage balances rose every month. Choosing to defer interest payments was a way of increasing leverag..
How much would he have to invest today : Greg Lawrence anticipates he will need approximately $227,300 in 14 years to cover his 3-year-old daughter’s college bills for a 4-year degree. How much would he have to invest today, at an interest rate of 10 percent compounded semi annually?
What is the main advantage of the jump instruction : What happens to the timer? If the timer was an RTO type instead of a TON, what would happen to the accumulated value and What is the main advantage of the Jump instruction?
What was your real rate of return based on fisher formula : Last year, you earned 11.67 percent on your investments. During that time period, inflation averaged 6.4 percent. What was your real rate of return based on the Fisher formula?
Complete the table with the correct postp-merger figures : The following table show pre-merger figures of CH Enterprises and ComYon Corporation: CH Enterprises (Pre-Merger) ComYon Corp.(Pre-Merger) CH Enterprises (Post-Merger) 1) EPS $2.00 $2.00 ? 2) Price per Share $40 $20 ? 3) P/E Ratio 20 10 ? 4) # of Sha..
Events involving a recent purchase of inventory : Shany market recorded the following events involving a recent purchase of inventory
What do you think of united motors claim : If you purchase (randomly select) a Starbird 300 and your car gets 27 mpg in city driving, what do you think of United Motors' claim? Explain your answer.
Enthalpy of formation of sodium bicarbonate : Write a balanced thermochemical equation for this reaction. Using the enthalpies of formation, calculate the enthalpy of formation of sodium bicarbonate.

Reviews

Write a Review

Financial Management Questions & Answers

  Use the afn equation to forecast broussards additional funds

Broussard Skateboard's sales are expected to increase by 25% from $9.0 million in 2015 to $11.25 million in 2016. Its assets totaled $4 million at the end of 2015. Broussard is already at full capacity, so its assets must grow at the same rate as pro..

  What is the price of the bill as a percentage of face value

A Treasury bill purchased in December 2015 has 118 days until maturity and a bank discount yield of 2.13 percent. Assume a $100 face value. What is the price of the bill as a percentage of face value?

  What was the approximate inflation rate

Your investments increased in value by 11.1 percent last year but your purchasing power increased by only 8.4 percent. What was the approximate inflation rate?

  Calculate the price and the duration of the bond

A 4-year bond, that has a face value of $100 and pays a coupon of 5% annually, is selling at a yield-to-maturity of 6%. Calculate the price and the duration of the bond.

  What is the projected effective gross income

You intend to develop a rental apartment building that has 100 units. It is in a good market and you will immediately fill it up, though with people moving in and out, and fixing up apartments between tenants, you have a typical vacancy rate of 5%. W..

  Manufacturing is considering upgrading a piece of equipment

A manufacturing is considering upgrading a piece of equipment. If a certain upgrade helps reduce operating costs by $750 per hour of use, and the upgraded equipment will be used on average 8 hours per day, what is the expected annual savings of upgra..

  What is the beta of each of the stocks

Consider the following information: Stock Return if Market Return Is: Stock –10% +10% A 0 +20 B –20 +20 C –30 0 D +15 +15 E +10 –10 What is the beta of each of the stocks?

  Inclusive have the following common conditions the riskless

inclusive have the following common conditions the riskless interest rate r gt 0 the underlier is trading at a spot

  Rate of return-compounded annually

Ms. Early Saver has decided to invest $1,000 at the end of each year for the next 10 years, then she will just let the amount compound for 40 additional years. Her brother, Late Saver, has a different investment program: He will invest nothing for th..

  Effective interest rates that would in fact make

You have just put your house up for sale. The agent tells you that two offers have been made: (1) 400,000 now and 400,000 in 2 years; and, (2) 287,500 now, 237,500 in 1 year and 275,000 in 2 years. Your agent says that one offer seems “just as good” ..

  Discuss two of biggest challenges facing financial managers

Find at least two articles from the ProQuest database that highlight and discuss two of the biggest challenges facing financial managers today.

  Present value of her royalty income if opportunity cost

Mary will receive $12,000 per year for the next 10 years as royalty for her work on a finance book. What is the present value of her royalty income if the opportunity cost is 12 percent?

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