Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer 18, 19, and 20 please Question 18 (1 point) Return of stock A 9% 4% 10% 15% 6% Year What is the variance of

image text in transcribed
image text in transcribedanswer 18, 19, and 20 please
Question 18 (1 point) Return of stock A 9% 4% 10% 15% 6% Year What is the variance of returns for stock A? (Enter your answer as a decimal rounded to 5 decimal places, not a percentage. For example, enter 0.00153 instead of 0.153%) Your Answer: Answer Question 19 (1 point) Suppose you earned nominal return of 9 percent on your investment last year. If the inflation rate last year was 2.7 percent, what was your real rate of return on this investment? (Enter your answers as a decimal rounded to 4 decimal places, not a percentage For example, enter 0.0843 instead of 8.43%) Your Answer Question 20 (1 point) A firm has a beta of 1.3. Calculate its equity cost of capital assuming that the expected return on the market is 10% and the risk-free rate is 2%. [Note: Enter your answer as a decimal rounded to four decimal places.] Your

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investments Analysis and Management

Authors: Charles P. Jones

12th edition

978-1118475904, 1118475909, 1118363299, 978-1118363294

More Books

Students also viewed these Finance questions