What is the market risk premium

Assignment Help Accounting Basics
Reference no: EM133049622

Question - The market has an expected rate of return of 9.8 percent. The long-term government bond is expected to yield 4.5 percent and the U.S. Treasury bill is expected to yield 3.4 percent. The inflation rate is 3.1 percent. What is the market risk premium?

Reference no: EM133049622

Questions Cloud

Network capacity planning : Discuss what is Network capacity Planning and how do you measure/determine the capacity of your network?
Prepare the accurate quantities of ingredients : -Using a recipe, determine what ingredients, equipment and food preparation is required and set yourself a time limit to complete each task, making sure it is i
Web server be installed on separate machines : Discuss why should the database and web server be installed on separate machines apart from the rest of the network?
Changing router and switch configuration information : What are some methods for keeping hackers from viewing and changing router and switch configuration information?
What is the market risk premium : The market has an expected rate of return of 9.8 percent. The inflation rate is 3.1 percent. What is the market risk premium
What form of ownership would you prefer : Conduct research as needed and explain your classification. What form of ownership would you prefer? Proprietorship, partnership, or corporation
What is the risk exposure of abs building society : NG Bank owns $300 million of variable-rate notes yielding BBR plus 4 per cent. What is the risk exposure of ABS Building Society
At what amount should the land be recorded : On the same day, another piece of land on the same block sold for $237,290. At what amount should the land be recorded
System analyst queries : Assume you are employed as a systems analyst at your organization. Your organization has a number of in-house developed software solutions

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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