What was the average real return on the stock

Assignment Help Finance Basics
Reference no: EM131732459

Question: Calculating Real Returns and Risk Premiums. For Problem, suppose the average inflation rate over this period was 3.2 percent and the average T-bill rate over the period was 4.3 percent.

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

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

Problem: Calculating Returns and Variability. You've observed the following returns on Barnett Corporation's stock over the past five years: -12 percent, 23 percent, 18 percent, 7 percent, and 13 percent.

a. What was the arithmetic average return on the stock over this fiveyear period?

b. What was the variance of the returns over this period? The standard deviation?

Reference no: EM131732459

Questions Cloud

Identity three types of pricing strategies : Pricing Strategies: Identity three types of pricing strategies.
Variety of gram-negative and positive microorganisms : Variety of Gram-negative and positive microorganisms, including Mycoplasmas and Chlamidiae
Provide the estimate regression equation : Provide the estimate regression equation. Does Soft&Soft's advertising expenditure have a statistically significance effect on the sales of bright Side
Pay for performance enhances employee management : Pay for Performance Enhances Employee Management at Scripps Health. Scripps Health is a long-standing and prominent nonprofit health-based organization
What was the average real return on the stock : Calculating Real Returns and Risk Premiums. For Problem, suppose the average inflation rate over this period was 3.2 percent and the average T-bill rate.
Define what desired outcomes should the nurse associate : What desired outcomes should the nurse associate with this drug order
What was the arithmetic average return on the stock : Calculating Real Rates. Given the information in Problem II, what was the average real risk-free rate over this time period?
Relevant costs per year as function of the order quantity : Write an expression (or expressions) for the total relevant costs per year as a function of the order quantity Q.
Costs of hiring saudi and foreign employees : The differentiation between costs of hiring Saudi and foreign employees in Saudi Arabia depend on all cost by government here

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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