What is the security equilibrium rate of return

Assignment Help Financial Management

Reference no: EM132015118

A particular security's default risk premium is 3 percent. For all securities the inflation risk premium is 4 percent and the real intertest rate is 2.25 percent. The securitys liquidity risk premium is 0.75 percent and maturity risk premium is 0.90 percent. The secuity has no special covenants. What is the security's equilibrium rate of return?

Reference no: EM132015118

Questions Cloud

Is there anything unethical about this service in general : These papers are posted to assist in research in the same way any other resource is posted on the Web and should simply be cited if used;

Stock under the discounted cash flow model : What is the expected rate of return for this stock under the discounted cash flow model?

What is examined in the simpler model : Suppose that the estimated coefficients b1, b2, and b3 are all positive in both Model (1) and (2) and b4 is also positive in Model (1).

What would you indicate is your philosophical paradigm : What are the similar parts and different parts for each of these paradigms? What would you indicate is your philosophical or theoretical paradigm and why?

What is the security equilibrium rate of return : The secuity has no special covenants. What is the security's equilibrium rate of return?

Demonstrate a strong critical understanding of retailing : Demonstrate a strong critical understanding of retailing trends and key considerations in the commercial environment and of the key elements of retail management; Demonstrate a critical understanding of the commercial and environmental forces which a..

Suffering from financial distress : Which one of these statements most applies to a firm that is suffering from financial distress?

Focus on suggesting two pieces of technology : Focus on suggesting two pieces of technology that you feel are essential to the implementation of your chosen strategic management goal.

Distribution of the number of viewers : The distribution of the number of viewers for AMC's "The Walking Dead" follows a normal distribution with a mean of 29 million viewers and a standard deviation

User Account

All Pages