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.
Is the depreciation is the loss of value of fixed assets?
Who introduced put–call parity?
Shana wants to purchase 5-year zero coupon bonds with a face value of $1,000. Her opportunity cost is 8.5 %. Supposing annual compounding, what would be the present market price of such bonds? (Round to the closest dollar.) (a) $1,023 (b) $665 (c) $890&nbs
You have joined Zurich Pvt. Ltd as a Finance manager. You are given the following information: Zurich Pvt Ltd. is a diversified manufacturing firm dealing with electrical appliances. In 2012, the firm reported an operating income of Rs. 857.60 million and faced a tax rate of 35% on income. The
Explain the model of Heath, Jarrow and Morton regarding tree building or Monte Carlo simulation.
XYZ Company is interested in purchasing a new corporate jet for $6 million. This will depreciate the jet completely in 5 years and then sell it for $5 million. The jet will utilize $60,000 in fuel annually, and its maintenance will be $40,000 yearly. The tax rate of X
Who published a book regarding option formula and risk neutrality?
Jenny is looking to invest in some 5-year bonds which pay annual coupons of 6.25 % and are presently selling at $912.34. What is the present market yield on these bonds? (Round to the closest Answer.) (1) 9.5% (2) 8.5% (3) 6.5% (4) 7.5%
Is the difference for the value creation in a company among the market value of the shares (capitalization) and their book value a good measure since its foundation?
What is the market risk premium within Spain at the present time – the number that I have to use in the valuations?
18,76,764
1932008 Asked
3,689
Active Tutors
1459416
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!