Historical return on stock market and risk-free rate
The market risk premium is difference among the historical return upon the stock market and the risk-free rate, for yearly. Why is this negative for some years?
Expert
The market risk premium (needed return) is not the difference among the historical return of the stock market and that of fixed-income. For illustration, the historical return of stock market over fixed-income in the United States fluctuates among 3 and 15 percent according to the time period referenced. The needed equity premium is the additional return an investor needs of the shares above the risk-free fixed-income. This does not have similar value for each investor and this is not observable. Thus, we cannot say this is a characteristic parameter of international or national economy.
A factory has three distinct systems for making similar product: System 1: Worker runs 3 machines of type-A, each of which costs $20 per day to run, each generates 100 units per day and the worker is paid $40 per day.System 2
Does the usual value of the sales and of the net income of Spanish companies have anything to do along with sustainable growth?
Active vs. Passive fund managers: Passive fund managers adopt a long term buy and hold strategy. Usually, stocks are purchased so that the portfolio’s returns will track those of an
Is this possible to use a constant WACC in the valuation of a company along with a changing debt?
Initial public offering: An initial public offering (IPO) otherwise called as stock market launch, is the first time company selling stock to public. Usually raised for capital expansion and to become publicly traded company. Investment banking firms
Who demonstrated that how to match theoretical and market prices for normal bonds?
Does the equity of shareholders represents the savings a company has accumulated by the years?
AB Corp. is in the business of making white-board markers. They are computing the potential of investing in some new equipment that will enhance their manufacturing process. The initial cost of the latest machinery is $470,000 plus a one-time installation cost o
Flow variables: Any variable, whose magnitude is evaluated over a time period, is termed as glow variable.
Who was the first to quantify the idea of Brownian motion?
18,76,764
1953049 Asked
3,689
Active Tutors
1429001
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!