Question

You’ve observed the following returns on Yamauchi Corporation’s stock over the past five years: –26.1 percent, 14.4 percent, 31.8 percent, 2.7 percent, and 21.7 percent. The average inflation rate over this period was 3.27 percent and the average T-bill rate over the period was 4.3 percent.

a. What was the average real risk-free rate over this time period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

b. What was the average real risk premium? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Answer #1

You’ve observed the following returns on Barnett Corporation’s
stock over the past five years: –29.1 percent, 16.4 percent, 35.8
percent, 3.7 percent, and 22.7 percent. The average inflation rate
over this period was 3.37 percent and the average T-bill rate over
the period was 4.3 percent. What was the average real risk-free
rate over this time period? (Do not round intermediate calculations
and enter your answer as a percent rounded to 2 decimal places,
e.g., 32.16.) Average real risk-free rate...

You’ve observed the following returns on Barnett Corporation’s
stock over the past five years: –28.5 percent, 16 percent, 35
percent, 3.5 percent, and 22.5 percent. The average inflation rate
over this period was 3.35 percent and the average T-bill rate over
the period was 4.3 percent.
What was the average real risk-free rate over this time period?
(Do not round intermediate calculations and enter your
answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
Average real risk-free rate...

You’ve observed the following returns on Barnett Corporation’s
stock over the past five years: –25.5 percent, 14 percent, 31
percent, 2.5 percent, and 21.5 percent. The average inflation rate
over this period was 3.25 percent and the average T-bill rate over
the period was 4.3 percent.
a. What was the average real return on the
stock? (Do not round intermediate calculations and enter
your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
Average real return
%
b....

You’ve observed the following returns on SkyNet Data
Corporation’s stock over the past five years: 11 percent, –10
percent, 19 percent, 18 percent, and 10 percent. Suppose the
average inflation rate over this period was 2.7 percent and the
average T-bill rate over the period was 4.8 percent.
What was the average real risk-free rate over this time period?
(Do not round intermediate calculations and enter your answer as a
percent rounded to 2 decimal places, e.g., 32.16.)
What was...

You’ve observed the following returns on Yasmin Corporation’s
stock over the past five years: 14 percent, –7 percent, 17 percent,
15 percent, and 10 percent. Suppose the average inflation rate over
this period was 1.4 percent and the average T-bill rate over the
period was 5.1 percent.
What was the average real risk-free rate over this time period?
(Do not round intermediate calculations. Enter your answer
as a percent rounded to 2 decimal places, e.g.,
32.16.)
Average real risk-free rate ...

You’ve observed the following returns on SkyNet Data
Corporation’s stock over the past five years: 12 percent, –9
percent, 20 percent, 17 percent, and 10 percent. Suppose the
average inflation rate over this period was 3.2 percent and the
average T-bill rate over the period was 4.9 percent. What was the
average real risk-free rate over this time period? (Do not round
intermediate calculations and enter your answer as a percent
rounded to 2 decimal places, e.g., 32.16.) What was...

9. You’ve observed the following returns on SkyNet Data
Corporation’s stock over the past five years: 10 percent, –10
percent, 17 percent, 22 percent, and 10 percent. Suppose the
average inflation rate over this period was 1.5 percent and the
average T-bill rate over the period was 3 percent.
What was the average real risk-free rate over this time period?
(Do not round intermediate calculations and enter your answer as a
percent rounded to 2 decimal places, e.g., 32.16.)
What...

You’ve observed the following returns on Yasmin Corporation’s
stock over the past five years: 18 percent, –3 percent, 16 percent,
11 percent, and 10 percent. Suppose the average inflation rate over
this period was 3.2 percent and the average T-bill rate over the
period was 5.5 percent.
a. What was the average real return on the
company's stock? (Do not round intermediate calculations.
Enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
Average real return ...

You’ve observed the following returns on Barnett Corporation’s
stock over the past five years: –27.3 percent, 15.2 percent, 33.4
percent, 3.1 percent, and 22.1 percent.
What was the arithmetic average return on the stock over this
five-year period? (Do not round intermediate calculations
and enter your answer as a percent rounded to 2 decimal places,
e.g., 32.16.)
Arithmetic average return % =
What was the variance of the returns over this period?
(Do not round intermediate calculations and round your...

You’ve observed the following returns on Crash-n-Burn Computer’s
stock over the past five years: 20 percent, –12 percent, 17
percent, 20 percent, and 10 percent. Suppose the average inflation
rate over this period was 1.7 percent and the average T-bill rate
over the period was 4.6 percent.
What was the average real risk-free rate over this time period?
(Do not round intermediate calculations. Enter your answer
as a percent rounded to 2 decimal places, e.g.,
32.16.)
Average real
risk-free rate...

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