Question: Please answer all the questiond and look at the last pic for answer format. thanks!! The real risk-free rate interest is 2%. Inflation is expected



The real risk-free rate interest is 2%. Inflation is expected to be 3% for the next 2 years and 5% during the next 3 years after that. Assume that the maturity risk premium is zero. What is the yield on 3-Year Treasury securities? 6.20%5.67%6.00%5.25% QUESTION 10 Which of the following investments is clearly preferred by a highly risk-averse investor considering adding one additional stock to a well-diversified portfolio? Neither A nor B Stock A. Either A or B Stock B. Stock W has the following returns for various states of the economy: Stock W's expected returns as a \% to 2-decimal places is QUESTION 12 Stock W's variance is annrnximate to 5 -decimal places [X.XXXXX] Stock W's standard deviation of returns as a \% is approximately [X.XX] QUESTION 14 Stock W's standard coeffirient of variance (CV) is [X.XXXXXX] QUESTION 15 Stock W's Sharde ratin aeeuming the risk-free is 2.25% [ X.XXXX] Numeric Format for Answers: 1. All final answers are to be in 2 decimal places unless otherwise indicated - Percentage is to be converted from decimal to 2-places, i.e., 0.5467 should be 54.67% - Dollar amounts should have 2-decimal placements, i.e., $54.67 or 54.67 - If a number needs to be rounded - follow the rounding rules, i.e., 0.54666 is 54.67 not 54.66 1. Do not include dollar (\$) or percent (\%) signs The real risk-free rate interest is 2%. Inflation is expected to be 3% for the next 2 years and 5% during the next 3 years after that. Assume that the maturity risk premium is zero. What is the yield on 3-Year Treasury securities? 6.20%5.67%6.00%5.25% QUESTION 10 Which of the following investments is clearly preferred by a highly risk-averse investor considering adding one additional stock to a well-diversified portfolio? Neither A nor B Stock A. Either A or B Stock B. Stock W has the following returns for various states of the economy: Stock W's expected returns as a \% to 2-decimal places is QUESTION 12 Stock W's variance is annrnximate to 5 -decimal places [X.XXXXX] Stock W's standard deviation of returns as a \% is approximately [X.XX] QUESTION 14 Stock W's standard coeffirient of variance (CV) is [X.XXXXXX] QUESTION 15 Stock W's Sharde ratin aeeuming the risk-free is 2.25% [ X.XXXX] Numeric Format for Answers: 1. All final answers are to be in 2 decimal places unless otherwise indicated - Percentage is to be converted from decimal to 2-places, i.e., 0.5467 should be 54.67% - Dollar amounts should have 2-decimal placements, i.e., $54.67 or 54.67 - If a number needs to be rounded - follow the rounding rules, i.e., 0.54666 is 54.67 not 54.66 1. Do not include dollar (\$) or percent (\%) signs
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
