Solution-Question regarding the average real return on the

Question regarding the average real return on the stock

Reference no: EM131054212

You've observed the following returns on SkyNet Data Corporation's stock over the past five years: 13 percent, -8 percent, 16 percent, 16 percent, and 10 percent. Suppose the average inflation rate over this period was 1.5 percent, and the average T-bill rate over the period was 5 percent.

a. What was the average real return on the stock?

b. What was the average nominal risk premium on the stock?

Reference no: EM131054212

Questions Cloud

Specify and execute the following queries for the database : Retrieve the names of students who have enrolled in a course that uses a textbook published by Addison-Wesley.

Approach versus the other : One of the key issues in valuation is whether to value just the equity portion of a firm or to value the entire enterprise. What are the arguments on both sides of this issue. Again, discuss what types of companies/situations might be best suited ..

Bonds expected rate of return : The market price is 1000 for a nine year bond ($1000 par value) that pays 11 percent interest (5.5 percent semiannually). What is the bonds expected rate of return?

Determining the required rate of return : Shelly Inc. bonds have a coupon rate of 8 percent. The interest is paid semiannually, and the bonds mature in 7 years. Their par value is 1000. If your required rate of return is 15 percent, what is the value of the bond? What is the value if the ..

Question regarding the average real return on the stock : You've observed the following returns on SkyNet Data Corporation's stock over the past five years: 13 percent, -8 percent, 16 percent, 16 percent, and 10 percent. Suppose the average inflation rate over this period was 1.5 percent, and the average..

The invitation speaking environment : chapter 13 is divided from the book into 6 main points in the chapter -Inviting Public Deliberation

Write a memo as the coding supervisor to your coding staff : Write a memo as the coding supervisor to your coding staff in regard to two of the Root Operation guidelines found under the Medical and Surgical guidelines in the front of your code book.

Represents the personal equity that the individual : Which of the following statements is/are correct? 1. Net worth represents the personal equity that the individual has in his assets and can never be less than zero. 2. If Lisa purchased a car using 30% cash and 70% debt, her net worth would increa..

What class of data models is based on this concept : What class of data models is based on this concept?

User Account

All Pages

Question regarding the average real return on the stock

Reference no: EM131054212

Reference no: EM131054212

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT