Question: Why would the return on exchange traded Treasury Bonds be used as a risk free rate to estimate the market risk premium?

Why would the return on exchange traded Treasury Bonds be used as a risk free rate to estimate the market risk premium?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

stock is: Costco undamental ratio analysis and industry analysis 1. Provide an executive summary on the firm you are assigned. 2. Study the industry of the stock you are assigned. Which industry is...

Q:

please use the excel to answer all the part of the questions E2) Carpetto Technologies is looking to estimate its cost of capital for capital budgeting purposes. Their in-house capital budgeting...

Q:

**Please Answer efg, A-d is included for reference** a) Thus FCF for: 2008=120+50-4-(-10)-60 =116 2009=140+30-2-5-75 =88 2010=150+40-3-(-8)-85 =110 B) Unlevered beta = Equity Beta Debt Equity...

Q:

D40 A XV fx A B D F F G . 1 L M N 1 1 Steamline Inc Historical Information Income Statement 2019 2020 Sales $304,657 $319,889.85 Earnings Before Interest and Taxes $31,060 Interest Expense $5,154...

Q:

10 points Save Answer QUESTION 7 Based on Abbott's 2019 financial information, what is Abbott's FCFE of the past fiscal year? For the toolbar, press ALT+F10 (PC) or ALT+FN-F10 (Mac), BIV. Paragraph...

Q:

QUESTIONS 10 points Save Answer Based on Abbott's 2019 financial information, What is Abbott's FCFF of the last fiscal year? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). BIVS Paragraph...

Q:

QUESTION 9 10 points Save Answer Assuming Abbott's dividend will grow at 10% per year for the next three years and then slow down to sustainable 2%. What would be a good estimate of its total market...

Q:

1. Assume that you are an equity analyst and you have been asked to generate a twelve month forward price target for ShopSmart Plc, a retail company. You decide to use the discounted Free Cash Flow...

Q:

QUESTION 1 10 points Save Answe 1. Using EV/EBITDA method, what would be a good estimate of Abbott's share price? (Abbott belongs to Health Care Product sector and its average EV/EBITDA is 22.67) For...

Q:

Assignment Required 1) Return construction. (Any share as example) a) Obtain daily share price data for any company listed in Bursa Malaysia. Data is available from Yahoo Finance/Google Finance for...

Q:

Explain what depreciation is, and how it is calculated using the straight-line method.

Q:

A study reported in Inside Higher Education News (May 22, 2006) found that financial incentives can improve low-income college students' grades and retention. As part of their "Opening Doors"...

Q:

As a risk management professional at a leading bank in Southern California, analyze what a cost containment plan involves in the context of physical risks impacting the bank s asset portfolio. Make...

Q:

A hula hoop and solid disc of equal radii are rolled, from rest and without slipping, down an incline plane. Which one will reach the bottom of the inclined plane first? Explain.

Q:

A company wants to produce 500 units over the next 3 months at a level rate. The months have 19, 20, and 21 working days, respectively. On the average, how much should the company produce each day to...

Q:

What information is needed to develop a make-to-stock production plan? LO.1

Q:

What information is needed to develop a make-to-order production plan? How does this differ from that needed for a make-to-stock plan? LO.1