What was the market risk premium during these ten years

Assignment Help Financial Management
Reference no: EM131052631

The average annual return on the Standard and Poor's 500 Index from 1986 to 1995 was 15.8 percent. The average annual T-bill yield during the same period was 5.6 percent. What was the market risk premium during these 10 years?

Reference no: EM131052631

Questions Cloud

Find the expected rate of inflation during the next year : Given the following data, find the expected rate of inflation during the next year. r*, the real risk-free rate= 3% maturity risk premium on 10-year Treasury bonds=2%, but zero on 1-year bonds default risk premium on 10-year, A-rated bonds=1.5% liqui..
Cash flows shown in the chart if appropriate cost of capital : Proficient-level: Compute the NPV statistic for Project Y and tell [advise] whether the firm should accept or reject the project with the cash flows shown in the chart if the appropriate cost of capital is 12 percent.
Questions for meridel le sueur : Discussion Questions for Meridel Le Sueur, "Women on the Breadlines" (1) How is Le Sueur's essay an example of reportage, or "agitation-journalism"?
Determining capital budgeting projects desirability : Describe the Net Present Value (NPV) method for determining a capital budgeting project's desirability. What is the acceptance benchmark when using NPV?
What was the market risk premium during these ten years : The average annual return on the Standard and Poor's 500 Index from 1986 to 1995 was 15.8 percent. The average annual T-bill yield during the same period was 5.6 percent. What was the market risk premium during these 10 years?
Calculate the beta of portfolio : Calculate the beta of your portfolio, which comprises the following items: (a) Olympic Steel stock, which has a beta of 2.2 and comprises 40 percent of your portfolio, (b) Rent-a-Center stock, which has a beta of 1.5 and comprises 28 percent of your ..
Describe process and reveal appropriate types of coverage : You have been an employee for the last ten years. Your employer had provided you with health insurance (coverage for just yourself), group term life insurance, and long-term disability coverage. Describe the process and reveal the appropriate types o..
Write a method called evenly divisible : Write a method called evenly Divisible that accepts two integer parameters and returns true if the first parameter is evenly divisible by the second, or vice versa, and false otherwise. Return false if either parameter is zero.
Refer to the real world case on linkedln : Refer to the Real World Case on Linkedln, Umbria, Mattel, and Others in the chapter. What is your take on the debate as to whether these "influential" individuals do really have an effect on others, or they are representative of an underlying cult..

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