Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1. Returns: Suppose you bought a 6 percent coupon bond one year ago for $1040. The bond sells for 1,063 today.
a. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?
b. What was your total nominal rate of return on this investment over the past Year?
c. If the inflation rate last year was 3 percent, what was your total real rate of return on this investment?
d. What is the ending price?

2. Calculating Returns and Variability: You've observed the following returns on Mary An Data Corporation's stock over the past five years: 27 percent, 13 percent, 18 percent, -14 percent, and 9 percent.
a. What was the arithmetic average return on Mary Ann's stock over this five-year period?
b. What was the variance of Mary Ann's returns over this period? and The standard deviation?
c. Calculating the real returns and risk Premiums, suppose the average inflation rate over this period was 4.2 percent, and the average T-bill rate over the period was 5.1 percent, what was the Average Real Return on Mary Ann's stock?
d. What was the average nominal risk premium on Mary Ann's stock?

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M924822

Have any Question? 


Related Questions in Basic Finance

A city built a new parking garage in a business district

A city built a new parking garage in a business district. For a random sample of 100 days, daily fees collected averaged $1,800, with a standard deviation of $500. Construct a 90% confidence interval estimate of the mean ...

1 what are placebo effects and how can they be avoided2

1. What are placebo effects, and how can they be avoided? 2. What are demand characteristics, and how can they be avoided? 3. In what ways may experimenters unwittingly communicate their expectations to research particip ...

1 given initial investment of 500000 project life of 5

1. Given initial investment of $500,000, project life of 5 years, salvage of $50,000, CCA rate of 20%, tax rate of 40%, and required return of 15%, what is the undepreciated cost of capital at the end of Year 3? Remember ...

1 why is the income approach to value often difficult to

1. Why is the income approach to value often difficult to use on a single-family residential appraisal? 2. What are the differences between the cost and sales comparison approaches to appraising property? 3. What are the ...

1 explain the origin and purpose of real estate investment

1. Explain the origin and purpose of Real Estate Investment Trusts. 2. Name three primary market lenders that are not subject to banking regulations. 3. Describe a warehouse line of credit and who may use it. 4. Are ther ...

Determine which report format is bestfor each of the

Determine which report format is best. For each of the following scenarios, which report format would you choose and why? If you would use a primarily text-based report format, identify whether you would create a separat ...

What is the relation between a companys operating risk and

What is the relation between a company's operating risk and its optimal capital structure? What is meant by the pecking order theory of capital structure? What are the implications of the Modigliani-Miller theory of capi ...

Select one construct from the following Select one construct from the following list:

Select one construct from the following list: self-esteem femininity/masculinity creativity hunger motivation fear Briefly describe how it might be measured using: a. an operational definition based on selfreport (for ex ...

Eat at my restaurant - cash flowwith this case we review

EAT AT MY RESTAURANT - CASH FLOW With this case, we review the cash flow of several restaurant companies. The restaurant companies reviewed and the year-end dates are as follows: 1. Yum Brands, Inc. December 25, 2010; De ...

1 suppose that a researcher finds a significant difference

1. Suppose that a researcher finds a significant difference between two treatment conditions. What additional information might be obtained by adding participant gender as a second factor? 2. Explain why it is better to ...

  • 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