Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. we know that during the last 10 years, the average

We know that during the last 10 years, the average historical return on a market...

80.2K

Verified Solution

Question

Finance

We know that during the last 10 years, the average historical return on a market index is 12%. We also know that the average inflation rate and average risk-free rate over the last 10 years are 2% and 5%, respectively. What is the real risk premium using the exact Fisher equation?

Select one:

a. 2.94%

b. 6.86%

c. 7.00%

d. 9.80%

e. 10.00%

Given the following share price history, calculate the standard deviation of the returns on this stock.

Year

Share price

1

$35

2

$30

3

$39

4

$42

5

$45

Select one:

a. 0.18%

b. 5.89%

c. 18.08%

d. 3.27%

e. 1.81%

What is the geometric average return of a stock with the following share price history?

Year

Share price

1

$35

2

$30

3

$39

4

$42

5

$45

Select one:

a. 7.95%

b. 7.64%

c. 7.14%

d. 6.84%

e. 6.48%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

GUTMAN(2007) ECOSYSTEM SERVICES SAWYER (2014) WHAT IS FINANCIALIZATION?

Medical Sciences
1.2K views

Q6: 2 parts A) Would it be possible for a person to be born with ovaries,...

Psychology
1.2K views

Personal Learning Journal Pre-unit self-assessment Name: Unit topic: ACCESSIBILITY I would rate my current knowledge or skill level with...

Basic Math
1.2K views

onsider the mathematical system indicated by the table Assume that the associative property holds for...

Algebra
1.2K views

Identify the real and imaginary parts of the given number Then tell which of the...

Accounting
1.2K views

One section of the production cost report describes the equivalent units of production for the...

Accounting
1.2K views

Dullen Lodging Suites is a 150 room hotel with an ADR of $90.00. Also, the...

Accounting
1.2K views

The timeline for the release of Tasmanian Transport Ltds 30 June 2019 financial statements is...

Accounting
1.2K views

Williams Group started a new business on September 1,2021. That same day, Williams Group also...

Accounting
1.2K views

eBOOK Show Me How Once 305 Days' cash on hand Financial statement data for years...

Accounting
1.2K views

Rapid market acceptance is a characteristic of products in the stage? a) Introduction b) Growth...

Accounting
1.2K views

Entries and Schedules for Unfinished Jobs and Completed Jobs Hildreth Company uses a job order...