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

Gun manufacturer bloodbath amp beyond currently has a cash

Gun manufacturer Bloodbath & Beyond currently has a cash balance of $750,000. It projects that cash outflows of $390,000 a month. The company pays a fee of $500 every time it sells securities through its broker and the a ...

Company x is currently considering a project that will

Company X is currently considering a project that will produce cash inflows of $9,000 a year for two years followed by $6,500 a year for three more years. The cost of the project is $25,000. What is the profitability ind ...

There are 1000 students in a high school among the 1000

There are 1000 students in a high school. Among the 1000 students, 150 students take AP Statistics, and 300 students take AP French. 100 students take both AP courses. Let S be the event that a randomly selected student ...

How would you identify the best nut factor for your

How would you identify the best nut factor for your application? How much torque would be required to tighten an ASTM A193 Gr. B16 bolt with a 31/4-8 thread to 60% of yield? Why does a wrench create a side load on the bo ...

The following is an excerpt taken from a november 30 2007

The following is an excerpt taken from a November 30, 2007, speech entitled "Innovation, Information, and Regulation in Financial Markets" by Federal Reserve Governor Randall S. Kroszner (www. federalreserve.gov/newseven ...

A an investor buys european call on a share for sh 5 the

a) An investor buys European call on a share for sh 5. The share price is sh 90 and the strike price is sh 85. Under which circumstances does the investor make profit? When will the option be exercised? Draw a diagram to ...

There are basically 5 categories of financial statement

There are basically 5 categories of financial statement analysis that is employed to assess the health of companies related to their financial performance. They are generally classified as liquidity, efficiency, debt, pr ...

1 distinguish between the four types of relational

1. Distinguish between the four types of relational collaborative arrangements. Provide an example of each. 2. What do you believe will be the impact of the Internet on market distribution by 2010? 3. What is a shipper r ...

1 financing what factors are considered in managing

1. Financing. What factors are considered in managing financing? 2. Investing. What is the primary objective of investing? What else must be considered? What potential investment vehicles are available? 3. Protecting You ...

A firm is considering the development of severalnew

A firm is considering the development of severalnew products. The products under consideration are listed in the next table. Products in each group are mutually exclusive. At most, one product from each group will be sel ...

  • 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