According to Investopedia, from 199x until 199y, big-company stocks earned a mean return of 12.34% whereas little-company stocks earned 17.25%. If the mean return on U.S. T-bills during this period was 2.53%, the risk premium on little-company stocks was a. 4.91% b. 19.78% c. 14.72% d. 11.78% e. 9.81%

Q: Given the following information, what is the standard deviation for VirtVaccine Inc.'s stock?…

A: Computation:

Q: What is the approximate and exact nominal rate of return on the common stock of Mountain Unequipped…

A: The approximate rate of return is the unadjusted rate of return that an investment provides to its…

Q: Over a certain period, large-company stocks had an average return of 12.54 percent, the average…

A: Given: Risk free rate = 2.57% Small company stock return = 17.41%

Q: ebello's preferred stock pays a dividend of $1.00 per quarter, and it sells for $55.00 per share.…

A: cost of preferred cost = dividend/ price effective annual rate of return =( 1+r)n-1 n is the no of…

Q: A stock has had the following year-end prices and dividends: Year Price Dividend $43.55 48.53 $ .87…

A: Arithmetic Average Return is the sum of all annual return divide by number of years. Formula od…

Q: You are given the following information regarding prices for stocks of the following firms:…

A: 1. Computation of price-weighted index.   Stock T price weight index T+1 price weight index after…

Q: In 2015, the mean return of all common stocks on the Philippine Stock Exchange was 3.5%. The…

A: A sampling distribution is a record of the means of all possible samples of equal size taken from…

Q: Use the following table:     Series Average return   Large stocks 11.76  %   Small stocks 16.46…

A: The return of portfolio can be calculated as expected return of the portfolio. The expected return…

Q: You have the following information about the returns for the securities of Super Lux plc and the…

A: The capital asset pricing model is the model which shows the relationship between the systematic…

Q: Over the past four years, large-company stocks and U.S. Treasury bills have produced the returns…

A: Here,

Q: The preferred stock of KICO store, is selling currently at RM47.13. If the required rate of return…

A: Preferred Shareholders are entitled to have a fixed rate of dividend. Although there is no statutory…

Q: Over the past 4 years, large-company stocks and U.S. Treasury bills have produced the returns stated…

A: real rate of return=1+nominal rate of return1+inflation-1.....(1)

Q: If the risk premium on the stock market was 6.96 percent and the risk-free rate was 2.60 percent,…

A: Risk premium of market = 6.96% Risk free rate = 2.60%

Q: Consider the following information on large-company stocks for a period of years.      Arithmetic…

A: Real Return = [(1+nominal) /(1+inflation)]-1

Q: In a year in which corporate bonds offered an average return of 9%, treasury bonds offered an…

A: Market risk premium is the difference between the expected return of the stock and the risk free…

Q: What would be the expected price of UPS stock on this​ date, if estimated using the method of​…

A: Earnings per share is the return for every share held by the shareholders. It is calculated by…

Q: The following table shows the sensitivity of four stocks to the three Fama–French factors. Assume…

A: Formula for Calculating: Expected return = Risk free rate + [Market beta * Market risk premium] +…

Q: Directions: Compute the total returns, the average of returns, and the standard deviation of the…

A: Data given: ERGH Inc., Year Stock Price (P) Jan-21 0.088 Feb-21 0.090 Mar-21 0.097…

Q: Assume these are the stock market and Treasury bill returns for a 5-year period: Stock Market T-Bill…

A: Risk Premium is the excess return generated by any asset after subtracting risk free rate/ return…

Q: Assume that over the last several decades, the annual returns on large-company common stocks…

A: Excess return earned by long-term government bonds = (long-term government bonds -U.S. T-bills)…

Q: Over a certain period, large-company stocks had an average return of 12.19 percent, the average…

A: Risk free rate = 2.50% Return on small-company stocks = 17.13%

Q: A stock has had the following year-end prices and dividends: Year Price Dividend $16.25 1 18.43 $…

A: Geometric return is annualized return found by taking individual return. This return is calculated…

Q: The stock of Eaton Corporation (ticker: ETN) has an E(R) = 9.3% and a reward-to-risk ratio = 6.32%.…

A: Reward to risk ratio = (expected return - risk free rate) / beta.

Q: The rate on US Treasury securities is 2.1% and the expected return on the S&P 500 stock market index…

A: The term US treasury securities are the securities that are issued by the US treasury, and the…

Q: A4 2e The stocks on ABC Company and XYZ Company have the following returns over the last five…

A: Given, coefficient of variation = standard deviation/average return

Q: ne of the most important features of a stock is its book value. The book value per share of…

A: EPS is the amount of earnings given to the shareholders for holding one share. It is computed from…

Q: Over a certain period, large-company stocks had an average return of 12.79 percent, the average…

A: Given, Risk-free rate = 2.62% Return on given stock = 17.61% Risk premium = Return on given stock -…

Q: Refer the table below on the average excess return of the U.S. equity market and the standard…

A: The question is based on the concept of portfolio theory and management. The portfolio is a…

Q: Review the following market information: Current Stock Market Return                    11.25%…

A: As per CAPM, Required Return = Risk free Rate + Beta * (Market return - risk free rate) where, Risk…

Q: You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 14…

A: Inflation rate=3.5%T-bill rate=4.2%

Q: Given the following information for the stock of Foster​ Company, calculate the risk premium on its…

A:

Q: Compute standard deviation for this stock.

A: Given:-  State of Economy Probability Expected Return Recession 10% -30% Below Average  20%…

Q: The returns on small company stocks are 10.7%, U.S. Treasury bill offer a 1.5% return and a bank…

A: Market risk premium describes the relationship between returns from an equity market portfolio and…

Q: A stock has had the following year-end prices and dividends:  Year   Price  Dividend 0   $…

A: Calculation of Arithmetic and Geometric Average Return:The arithmetic average return is 9.57% and…

Q: a) Historical nominal returns for Coca-Cola have been 8% and -20%. The nominal returns for the…

A: Beta= Change in security return/  Change in market return = (-20%-8%)/(28%-(-15%)) = -28%/43% =…

Q: Calculate the observed risk premium in each year for the large-company stocks versus the T-bills.…

A: Risk premium: The risk premium is the excess return that is expected on the investment over and…

Q: Rand Corp's stock price at the end of last year was $40.00, and its book value per share was $24.50.…

A: A ratio that helps investors to evaluate the company’s performance by comparing the stock’s market…

Q: Which of the following regarding the stock indices is true? O A. The divisor for Dow Jones…

A: Disclaimer:-Since you have asked multiple question, we will solve the first question for you. If you…

Q: Assume that the stock market index is trading at a level of 4,500. You can interpret this index…

A: Stock market index level = 4500 Risk Free Rate = 1.3% Aggregate earnings = 132 Payout Ratio = 45%…

Q: The following table contains monthly returns for Cola Co. and Gas Co. for 2010 E (the returns are…

A: To calculate standard deviation of each stock excel function STDEV.S is used. Standard deviation of…

Q: Assume that the stock market index is trading at a level of 4,500. You can interpret this index…

A: Stock Market Index Level = 4500 Long Term Risk Free Rate = 1.3% Aggregate Earnings Expected Next…