Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Here are stock market and Treasury bill percentage returns between 2006 and 2010:

Year Stock Market Return T-Bill Return
2006 17.27 6.30
2007 7.41 6.06
2008 ?38.83 1.80
2009 29.70 0.90
2010 19.36 0.52

--------------------------------------------------------------------------------

a. What was the risk premium on common stock in each year? (Negative values should be indicated by a minus sign. Round your answers to 2 decimal places.)

Year Risk Premium
2006 __________ %
2007 ___________%
2008 ___________ %
2009 ____________%
2010 ____________%

--------------------------------------------------------------------------------

b. What was the average risk premium? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Average risk premium = _________ %

c. What was the standard deviation of the risk premium? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Standard deviation of the risk premium = ___________ %

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M927533

Have any Question? 


Related Questions in Basic Finance

What is the weekly risk free rate with continuous

What is the weekly risk free rate with continuous compounding (You do not need to calculate the number exactly...a close approximation will be sufficient). Risk Free Rate = 1.79% nominal rate with one compounding period ...

Create a 10-15-slide powerpoint presentation demonstrating

Create a 10-15-slide PowerPoint presentation demonstrating a thorough understanding of the firm you have been evaluating through the class. Be sure to include speaker notes at the bottom of each slide that provide more d ...

A news story reported that the former ceo of homebuilder kb

A news story reported that the former CEO of homebuilder KB Home was convicted "of four felony counts in a stock option backdating scam." The article goes on to note: A stock option allows an employee to purchase a compa ...

1 what is net worth what role does net worth play in

1. What is net worth? What role does net worth play in lenders' attempts to reduce adverse selection problems? 2. What is relationship banking? How do banks and borrowers benefit from relationship banking? 3. What is the ...

Research a potential employerassume that your favorite

Research a potential employer Assume that your favorite company has invited you to interview. To prepare for the interview, research the company by reviewing its website, reading news stories, and exploring websites such ...

An investor has 60000 to invest in a 280000 property he can

An investor has $60,000 to invest in a $280,000 property. He can obtain either a $220,000 loan at 9.5 percent for 20 years or a $180,000 loan at 9 percent for 20 years and a second mortgage for $40,000 at 13 percent for ...

1 an anonymous billionaire investor was quoted in the wall

1. An anonymous billionaire investor was quoted in the Wall Street Journal as asking: "Has there ever been a carry trade that hasn't ended badly?" What is a carry trade? Why might it end badly? 2. Interest rates on U.S. ...

For each of the following studies consider whether or not

For each of the following studies, consider whether or not you think the research is ethical, how the research may have violated principles of ethical behavior, and what, if any, alternative research methods for testing ...

1 define a multinational corporation mnc what additional

1. Define a multinational corporation (MNC). What additional factors must be considered by the manager of an MNC that a manager of a purely domestic firm is not forced to face? 2. Who are the major players in foreign cur ...

1 what is the law of one price how is it related to the

1. What is the law of one price? How is it related to the theory of purchasing power parity (PPP)? 2. Is PPP a theory of exchange rate determination in the long run or in the short run? 3. According to the theory of purc ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro