Youve observed the following returns on crash-n-burn

Assignment Help Finance Basics
Reference no: EM13616741

You've observed the following returns on Crash-n-Burn Computer's stock over the past five years: 18 percent, -3 percent, 16 percent, 11 percent, and 10 percent. Suppose the average inflation rate over this period was 3.2 percent and the average T-bill rate over the period was 5.5 percent.

a.What was the average real return on Crash-n-Burn's stock? (Round your answer to 2 decimal places. (e.g., 32.16))

Average real return %

b.What was the average nominal risk premium on Crash-n-Burn's stock?

Reference no: EM13616741

Questions Cloud

If you made a 65000 deposit in each bank how much more : first city bank pays 8 percent simple interest on its savings account balances whereas second city bank pays 8 percent
How fast is betty moving when the swing passes through its : betty weighs 433 n and she is sitting on a playground swing seat that hangs 0.36 m above the ground. tom pulls the
A friend comes to you with the following information on : a friend comes to you with the following information on company x. he tells you that the company has price to earnings
Consider the same firm in question 1 its earnings per share : consider the same firm in question 1 its earnings per share were 3.00 during the current year period 0. the firm
Youve observed the following returns on crash-n-burn : youve observed the following returns on crash-n-burn computers stock over the past five years 18 percent -3 percent 16
A simple random sample of size n40 is drawn from a : a simple random sample of size n40 is drawn from a population. the sample mean is found to be x with the line above it
If that same man used a tennis racket to deflect the : an 80 kg person in outer space is at rest when he catches a 10 kg asteroid moving at 15ms. what is the final velocity
Calculate the power in horsepower required to accelerate : resistance to the motion of an automobile consists of road friction which is almost independent of speed and air drag
An oil companys resources are being depleted and known : an oil companys resources are being depleted and known reserves are becoming scarcer. as a result the companys earnings

Reviews

Write a Review

Finance Basics Questions & Answers

  Aqua pure purchases 50000 gallons of distilled water each

aqua pure purchases 50000 gallons of distilled water each year. ordering costs are 100 per order and the carrying cost

  What is the amount of the net new borrowing for the current

The income statement for the current year displays an interest paid amount of $8,200. What is the amount of the net new borrowing for the current year?

  With ten years to maturity if yield to maturity goes down

you are called in as a financial analyst to appraise the bonds of olsens clothing stores. the 1000 par value bonds have

  What is the current share price

If the required return is 11 percent and the company just paid a dividend of $1.45, what is the current share price?

  Project acquisition management

What are Key Performance Parameters (KPP) and why are they necessary to be stated in the acquisition process? What are the four componets of Net-Ready Key Performance Parameter (NR-KPP)?

  What is the proportion of the optimal risky portfolio

The risk-free rate of return is 10%. What is the proportion of the optimal risky portfolio that should be invested in stock A?

  How many patient days does the hospital need to break even

Cedars Hospital has average revenue of $180 per patient day. Variable costs are $45 per patient day; fixed costs total $4,320,000 per year.

  If a company wants to increase its reported income by

if a company wants to increase its reported income by manipulating its investment accounts which should it do?a sell

  This new machine costs 15000 and has an estimated life of 5

the michener company purchased a special machine 1 year ago at a cost of 12000. at that time the machine was estimated

  The increase in the number of multinational corporations

international services supplied to multinational corporations.the increase in the number of multinational corporations

  From the following information calculate i current ratio ii

from the following information calculate i current ratio ii quick ratio and iii working capital turnover

  What are some examples of nonconventional expenditures

What are some examples of nonconventional expenditures that must be considered in the modern public financial management and budgeting environment? Which are most difficult to address? Why? What strategies do agencies employ to deal with them?

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