Over the last nine years, you have earned the following returns on the NZX Year Return...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Over the last nine years, you have earned the following returns on the NZX Year Return (ending in March) 2013-2014 17.45% 2014-2015 15.17% 2015-2016 17.26% 2016-2017 7.94% 2017-2018 16.92% 2018-2019 19.54% 2019-2020 0.36% 2020 2021 28.93% 2021-2022 -5.17% You have also collected the level of the CPI over the same period: Date Level March 2013 958 March 2014 972 March 2015 975 March 2016 March 2017 March 2018 March 2019 March 2020 979 1000 1011 1026 1052 March 2021 1068 March 2022 1142 (a) For each tax year, calculate the inflation rate. (b) Now calculate a real rate of return for the NZX50 (use the full for- mula, not the approximation) for each year. (c) What is the mean nominal return for the NZX50? What is the mean real return? (d) What is the nominal volatility for the NZX50? What is the real volatility of the NZX50? (e) Suppose New Zealand had a 33% tax levied on capital gains and all dividends. Repeat your analysis, calculating after-tar mean real and nominal returns, along with real and nominal after-tar volatilities. Over the last nine years, you have earned the following returns on the NZX Year Return (ending in March) 2013-2014 17.45% 2014-2015 15.17% 2015-2016 17.26% 2016-2017 7.94% 2017-2018 16.92% 2018-2019 19.54% 2019-2020 0.36% 2020 2021 28.93% 2021-2022 -5.17% You have also collected the level of the CPI over the same period: Date Level March 2013 958 March 2014 972 March 2015 975 March 2016 March 2017 March 2018 March 2019 March 2020 979 1000 1011 1026 1052 March 2021 1068 March 2022 1142 (a) For each tax year, calculate the inflation rate. (b) Now calculate a real rate of return for the NZX50 (use the full for- mula, not the approximation) for each year. (c) What is the mean nominal return for the NZX50? What is the mean real return? (d) What is the nominal volatility for the NZX50? What is the real volatility of the NZX50? (e) Suppose New Zealand had a 33% tax levied on capital gains and all dividends. Repeat your analysis, calculating after-tar mean real and nominal returns, along with real and nominal after-tar volatilities.
Expert Answer:
Answer rating: 100% (QA)
a For each tax year calculate the inflation rate Year Inflation Rate 20132014 147 20142015 028 20152... View the full answer
Related Book For
Posted Date:
Students also viewed these finance questions
-
The following balance sheet items are available from Carnell Inc. as of December 31, 2012: Required a. Prepare a comparative, classified balance sheet for Carnell Inc. b. Perform horizontal and...
-
The following balance sheet (prepared according to IFRS) was taken from the 2008 annual report of GlaxoSmithKline, a British pharmaceutical company (British pounds in millions). REQUIRED: Identify...
-
The bookkeeper for Geronimo Company has prepared the following balance sheet as of July 31, 2014. The following additional information is provided. 1. Cash includes $1,200 in a petty cash fund and...
-
Dew Company employs standard costing and applies overhead based upon machine labor hours. Monthly production is scheduled at 500 units. Standard and actual data for the month is as follows: Standards...
-
Sketch a frequency histogram that describes a skewed-left distribution, which has an approximate center 70 and an outlier of 20. Discuss.
-
The flow just upstream of a normal shock wave is given by p 1 , = 1atm, T 1 = 288 K, and M 1 = 2.6. Calculate the following properties just downstream of the shock: p 2 , T 2 , P 2 , M 2 , p 0,2 , T...
-
For each of the following stream functions, with units of \(\mathrm{m}^{2} / \mathrm{s}\), determine the magnitude and the angle the velocity vector makes with the \(x\) axis at \(x=1 \mathrm{~m},...
-
Faraday Electronic Service repairs stereos and DVD players. During a recent year, Faraday engaged in the following activities: a. On September 1, Faraday paid Wausau Insurance $4,860 for its...
-
Blue Bird Sporting Goods reported the following data at July 31, 2021, with amounts in thousands: (Click the icon to view the income statement.) (Click the icon to view the balance sheet.) Read the...
-
National Bank operates a network of automated teller machines (ATMs). Cash withdrawals at an ATM aver-age about $ 80. The bank estimates that the fixed cost of filling an ATM with cash is about $ 100...
-
An appraiser used the cost approach to estimate a propertys value at $220,000. The site value was $50,000, and the total depreciation estimate was $4,000. What was the estimated cost of improvements?
-
What can you say about the field at point 1 ?compared with the field at point 2 ? + $2
-
How does one reconcile ethical dilemmas in professional settings, particularly when they intersect with personal values and societal norms ?
-
Tara is enrolled for spring semester at college. The tuition is $ 6 , 0 0 0 , but she has a schotarship for $ 1 , 0 0 0 as well as a work - study arant or $ 2 . 0 0 0 . Ine nearn tees and student...
-
As we delve into the realms of quantum computing and computational neuroscience, what profound implications do you foresee for the future of cognitive augmentation and human-machine symbiosis, and...
-
Today's shift to value-based reimbursement is causing a shift in how devices and medical products are marketed and sold, and how the new buyers value what is being offered. Review and analyze the...
-
The region 05:5 L between the planes z 0 and L is filled with incompressible fluid. The plane =0 is held at rest and the plane z = L moves with constant velocity Uj in the positive y-direction. Let...
-
Portal Manufacturing has total fixed costs of $520,000. A unit of product sells for $15 and variable costs per unit are $11. a). Prepare a contribution margin income statement showing predicted net...
-
Big E Services provides the following selected information from its trial balance and adjusted trial balance at August 31: Required Prepare the adjusting journal entries that Big E must have made at...
-
A company reports the following for accounts receivable: Required For each year, determine the company's total or gross accounts receivable, net realizable value of accounts receivable, and allowance...
-
McKnight Company's June 30 bank statement shows a balance of $14,750. McKnight's books show a June 30 cash balance of $13,600. McKnight also has the following information: 1. Deposits in transit as...
-
For the Biot problem in a slab by expanding the sin and cos term and keeping only terms up to \(\lambda^{2}\) the following approximate relation can be obtained for the eigenvalues for small Biot...
-
A hot dog at \(5^{\circ} \mathrm{C}\) is to be cooked by dipping it in boiling water at \(100^{\circ} \mathrm{C}\). Model the hot dog as a long cylinder with a diameter of \(20 \mathrm{~mm}\). Find...
-
A finite cylinder is \(2 \mathrm{~cm}\) in diameter and \(3 \mathrm{~cm}\) long and at a temperature of \(200^{\circ} \mathrm{C}\), and is cooled in air at \(30^{\circ} \mathrm{C}\). The convective...
Study smarter with the SolutionInn App