What was the average real risk-free rate

Assignment Help Financial Management
Reference no: EM131081554

You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 10 percent, –11 percent, 18 percent, 19 percent, and 10 percent. Suppose the average inflation rate over this period was 2.2 percent and the average T-bill rate over the period was 4.7 percent. What was the average real risk-free rate over this time period? (Round your answer to 2 decimal places. (e.g., 32.16)) Average real risk-free rate % What was the average real risk premium? (Round your answer to 2 decimal places. (e.g., 32.16)) Average real risk premium %

Reference no: EM131081554

Questions Cloud

How big of an impact was wifi or lack of wifi : A piece of the change can be attributed to the expansion of Wifi which is the biggest silent partner to mobile that is not talked about. What other environments or businesses have you seen which are slow to change and accept mobile technology? How..
Differences in long-term debt financing-long-term leasing : What are the differences between long-term debt financing and long-term leasing. Under what circumstances would you choose between the two if put in a position to do so? Give an example.
Effective organizational culture : What is organizational culture? What must strategic leaders do to develop and sustain an effective organizational culture?
What are the corresponding payoffs : What are the corresponding payoffs?
What was the average real risk-free rate : You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 10 percent, –11 percent, 18 percent, 19 percent, and 10 percent. Suppose the average inflation rate over this period was 2.2 percent and the average T-bi..
Construction of plant to manufacture energy saving device : ELC Electrical Services is considering the construction of a plant to manufacture a new energy saving device for small offices. The company recently commissioned a $100,000, two-year study to assess the market demand for the proposed product.
Dupont analysis-what is the firm return on equity : (DuPont analysis) Bryley, Inc. earned a net profit margin of 5.1 percent last year and had an equity multiplier of 3.49. If its total assets are $109 million and its sales are $157 million, what is the firm's return on equity? (Round to one decimal p..
Example of a governmental function : Provide an example of a governmental function that could not be mitigated through the use of insurance (or self-insurance as many do).
What was not clear as you read the paper of your peers : As you provide feedback to peers, you are not grading their assignment, but you are enlarging the conversation to prod a bit more on what could be added to clarify the paper substantively. Please be very specific and share what you would like to ..

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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