Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer all the questiond and look at the last pic for answer format. thanks!! The real risk-free rate interest is 2%. Inflation is expected

Please answer all the questiond and look at the last pic for answer format. thanks!!
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The real risk-free rate interest is 2%. Inflation is expected to be 3% for the next 2 years and 5% during the next 3 years after that. Assume that the maturity risk premium is zero. What is the yield on 3-Year Treasury securities? 6.20%5.67%6.00%5.25% QUESTION 10 Which of the following investments is clearly preferred by a highly risk-averse investor considering adding one additional stock to a well-diversified portfolio? Neither A nor B Stock A. Either A or B Stock B. Stock W has the following returns for various states of the economy: Stock W's expected returns as a \% to 2-decimal places is QUESTION 12 Stock W's variance is annrnximate to 5 -decimal places [X.XXXXX] Stock W's standard deviation of returns as a \% is approximately [X.XX] QUESTION 14 Stock W's standard coeffirient of variance (CV) is [X.XXXXXX] QUESTION 15 Stock W's Sharde ratin aeeuming the risk-free is 2.25% [ X.XXXX] Numeric Format for Answers: 1. All final answers are to be in 2 decimal places unless otherwise indicated - Percentage is to be converted from decimal to 2-places, i.e., 0.5467 should be 54.67% - Dollar amounts should have 2-decimal placements, i.e., $54.67 or 54.67 - If a number needs to be rounded - follow the rounding rules, i.e., 0.54666 is 54.67 not 54.66 1. Do not include dollar (\$) or percent (\%) signs The real risk-free rate interest is 2%. Inflation is expected to be 3% for the next 2 years and 5% during the next 3 years after that. Assume that the maturity risk premium is zero. What is the yield on 3-Year Treasury securities? 6.20%5.67%6.00%5.25% QUESTION 10 Which of the following investments is clearly preferred by a highly risk-averse investor considering adding one additional stock to a well-diversified portfolio? Neither A nor B Stock A. Either A or B Stock B. Stock W has the following returns for various states of the economy: Stock W's expected returns as a \% to 2-decimal places is QUESTION 12 Stock W's variance is annrnximate to 5 -decimal places [X.XXXXX] Stock W's standard deviation of returns as a \% is approximately [X.XX] QUESTION 14 Stock W's standard coeffirient of variance (CV) is [X.XXXXXX] QUESTION 15 Stock W's Sharde ratin aeeuming the risk-free is 2.25% [ X.XXXX] Numeric Format for Answers: 1. All final answers are to be in 2 decimal places unless otherwise indicated - Percentage is to be converted from decimal to 2-places, i.e., 0.5467 should be 54.67% - Dollar amounts should have 2-decimal placements, i.e., $54.67 or 54.67 - If a number needs to be rounded - follow the rounding rules, i.e., 0.54666 is 54.67 not 54.66 1. Do not include dollar (\$) or percent (\%) signs

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

Students also viewed these Finance questions