User Account

All Pages

What was the standard deviation of the risk premium

Assignment Help Finance Basics
Reference no: EM132528151

Assume these are the stock market and treasury bill returns for a 5-year period:

Year Stock Market Return (%) T-Bill Return (%)

2013 34.50 0.16

2014 14.20 0.16

2015 -4.10 0.16

2016 15.30 0.03

2017 24.60 0.05

a.  What was the risk premium on common stock in each year? (do not round intermediate calculations. enter your answer as a pecent runded to 2 decimal places.)

b. What was the average risk premium?

c. What was the standard deviation of the risk premium? (ignore that the estimation is from a sample data.)

Reference no: EM132528151

Questions Cloud

What is the total rate of return on the stock : A stock is selling for $60 per share. At the end of the year, it pays a dividend of $3 per share and sells for $66.
Prepare the necessary journal entries related to the stock : Required - Prepare the necessary journal entries related to the stock option plan for the years ended December 31, 2017 through 2020
Find the approximate internal rate of return : Determine the approximate internal rate of return. Compute (1) the cash payback period and (2) the annual rate of return on the proposed capital expenditure.
Describe business case recommendations to senior management : Describe your business case recommendations to senior management for developing a forensic lab. Include a description of the physical layout requirements.
What was the standard deviation of the risk premium : What was the standard deviation of the risk premium? (ignore that the estimation is from a sample data.)
Prepare entries to record actual returns : Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 2021; (b) record actual returns in 2021 of merchandise
How you would set up a computer forensics lab : Write a paper detailing how you would set up a computer forensics lab. Include a section in your paper for each of the Computer Forensics Lab requirements.
Find the equivalent markup percent on cost : A store sells an item for $340 each. If this is a 38.1% markup on the selling price, find the equivalent markup percent on cost.
Explain the three major theoretical approaches : Summarize and explain the three major theoretical approaches that were introduced in this chapter - Durkheim and human consciousness,

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd