What was market risk premium during these ten years

Assignment Help Financial Management
Reference no: EM131916223

1. The average annual return on an Index from 1996 to 2005 was 13.25 percent. The average annual T-bill yield during the same period was 3.35 percent. What was the market risk premium during these ten years? (Round your answer to 2 decimal places.)

Average market risk premium = %

2.  If the risk-free rate is 7.80 percent and the risk premium is 9.5 percent, what is the required return? (Round your answer to 1 decimal place.)

Required Return =  %

3. Nanometrics, Inc., has a beta of 1.02. If the market return is expected to be 9.55 percent and the risk-free rate is 1.80 percent, what is Nanometrics’ required return? (Round your answer to 2 decimal places.)

Nanometrics’ required return = %

Reference no: EM131916223

Questions Cloud

If market is strong form efficient then : If a market is strong form efficient then:
What is the profitability-producer surplus of delta airlines : What is the profitability-producer surplus of Delta Airlines and their product quality
What is portfolio return : If you have a portfolio made up of 35 percent Yum Brands, 30 percent Raytheon, and 35 percent Coca-Cola, what is your portfolio return?
The average return and standard deviation of wholemart : The average return and standard deviation of WholeMart are 12 percent and 35 percent; and of Fruit Fly are 17 percent and 30 percent.
What was market risk premium during these ten years : The average annual T-bill yield during the same period was 3.35 percent. What was the market risk premium during these ten years?
Categorical variables Fuel Type and Color : Create dummy variables for the categorical variables Fuel_Type and Color.
Financial planning and forecasting : Given the estimated sales forecast and the estimated relationship between inventories and sales, what is your forecast of the company's year-end inventory level
In the binomial option pricing model : In the binomial option pricing model the:
What would be the nominal and effective cost of such credit : What would be the nominal and effective cost of such a credit? what would be the effective cost of the bank loan?

Reviews

Write a Review

Financial Management Questions & Answers

  Equal annual end-of-the-year cash flow

You have accumulated $1,872,270 for your retirement. How much money can you withdraw for the next 16 years in equal annual end-of the next 16 years in equal annual end-of-the-year cash flow if you invest the money at a rate of 17.85 percent per year,..

  Interest rates are important to financial institutions

Interest rates are important to financial institutions since an interest rate increase _________ the cost of acquiring funds and _________ the income from assets.

  What dollar amount of interest per bond

Bond interest payments before and after taxes Charter Corp. has issued 2,773 debentures with a total principal value of ?$2,773,000. The bonds have a coupon interest rate of 99?%. What dollar amount of interest per bond can an investor expect to rece..

  What is the depreciation tax shield for year three

A project will increase annual sales by $144,000 and cash expenses by $95,000 for four years. The project has an initial cost of $102,000 for equipment that will be depreciated using MACRS depreciation. The applicable MACRS table values are .1429, .2..

  Accounting professionals are skilled in financial analysis

Many accounting and accounting-related professionals are skilled in financial analysis, but most are not skilled in manufacturing. This is especially the case for process manufacturing environments (for example, a bottling plant or chemical factory)...

  Calculate taxable income-net tax payable of beneficiaries

Calculate the taxable income and net tax payable of the beneficiaries. Calculate the net tax payable by the trustee.

  Compounded annually grow

What will $5,000 invested for 10 years at 8 percent compounded annually grow to? How many years will it take $400 to grow to $1,671 if it is invested at 10 percent compounded annually? At what rate would $1,000 have to be invested to grow to $4,046 i..

  Five-thousand-acre ranch to my screen idol Tilda Swinton

Lady Gaga grants her five-thousand-acre ranch “to my screen idol, Tilda Swinton.”

  The oil trust pays quarterly dividends starting one month

There is an oil trust that will terminate in 25 months, with no terminal payment. The oil trust pays quarterly dividends starting one month from now (8 dividends total). You believe, with the price of oil and the production volume, that you will rece..

  Significantly speed up production time on the assembly line

Your company, Diamond Dynamics, is researching whether or not it would be a good decision to invest in new manufacturing equipment that will significantly speed up production time on the assembly line.

  It usually engages in a long-term contract with these

xyz inc. is a large producer of chicken for grocery stores. it usually engages in a long-term contract with these

  Which would represent an after tax risk premium

The corporate investors require an after-tax return on the preferred that exceeds their after-tax return on the bonds by 1.0%, which would represent an after-tax risk premium.

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