Question: What is the expected return for a portfolio with a risk premium of 2.08 percent if the risk-free return is 2.72 percent and the inflation

What is the expected return for a portfolio with a risk premium of 2.08 percent if the risk-free return is 2.72 percent and the inflation rate is 1.19 percent?(Round the value to 100th decimal and Please enter the value only without converting it to a decimal format. If the answer is 8.55%, enter 8.55)

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!

What is the expected return for a portfolio with a risk premium of 2.09 percent if the risk-free return is 2.45 percent and the inflation rate is 1.46 percent?(Round the value to 100th decimal and...

What is the expected return for a portfolio with a risk premium of 2.03 percent if the risk-free return is 2.53 percent and the inflation rate is 1.36 percent?(Round the value to 100th decimal and...

What is the expected return for a portfolio with a risk premium of 2.82 percent if the risk-free return is 3.64 percent and the inflation rate is 1.30 percent?(Round the value to 100th decimal and...

What is the expected return for a portfolio with a risk premium of 2.06 percent if the risk-free return is 2.42 percent and the inflation rate is 1.15 percent?(Round the value to 100th decimal and...

QUESTION 1 What is the risk free rate of an asset has an expected return of 8.01 percent and a risk premium of 5.71 percent?(Round the value to 100th decimal and Please enter the value only without...

4/ A. Gomi Waste Disposal stock is currently priced at 55.46 dollars per share and is expected to pay its next dividend, which is expected to be 5.77 dollars, in 1 year. The stock has a risk premium...

What is the risk free rate of an asset has an expected return of 8.00 percent and a risk premium of 5.67 percent?(Round the value to 100th decimal and Please enter the value only without converting...

15 Consider the following information on a portfolio of three stocks: State of Economy Boom Normal Bust Probability of State Stock A Rate of Stock B Rate of Stock C Rate of Economy Return Return of...

Consider the following information on a portfolio of three stocks: State of Probability of State Stock A Rate of Economy of Economy Return .06 Boom 15 Normal 51 Bust 34 .20 a. Expected return....

State of Probability of State Stock A Rate of Economy of Economy Return Boom .06 Normal . 14 Bust .20 .15 -51 .34 a. Expected return Variance Standard deviation b. Expected risk premium Stock B Rate...

Given $200 million is invested in each of the company AAA and company BBB, the effective risk-free interest rate is 3% per annum, all rates are annually compounded and recovery rates on the bonds in...

A vapor-compression refrigeration system for a household refrigerator has a refrigerating capacity of 1500 Btu/h and uses R-134a as the refrigerant. The refrigerant enters the evaporator at30 lbf/in2...

What register is used to keep track of the next instruction to be executed?

10) For a bond that pays cash interest (i.e., not a zero coupon bond), YTM is (a) always equal to the coupon rate (b) always equal to the current yield (c) is always less than the coupon rate (d) can...

3-1 Which features of organizations do managers need to know about to build and use information systems successfully? Define an organization and compare the technical definition of organizations...

3-3 How do Porters competitive forces model, the value chain model, synergies, core competencies, and network economics help companies develop competitive strategies using information systems? ...

3-2 What is the impact of information systems on organizations? Describe the major economic theories that help explain how information systems affect organizations. Describe the major behavioral...