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PLEASE ANSWER BOTH QUESTIONS 6 . Refer to the table in Problem 4.5. What is the expected total return in dollars and as a percentage
PLEASE ANSWER BOTH QUESTIONS
6. Refer to the table in Problem 4.5. What is the expected total return in dollars and as a percentage of your original investment if you purchase 100 shares of the investment at the beginning of 2014 and sell it at the end of 2016?
8. The risk-free rate is 4.8%, and expected inflation is 3.2%. If inflation expectations change such that future expected inflation rises to 4.5%, what will the new risk-free rate be?
Market Value 2013 2014 2015 2016 2017 Income Beginning Ending $30.00 $32.50 $35.00 $33.00 $40.00 $1.00 $1.20 $1.30 $1.60 $1.75 S32.50 $35.00 $33.00 $40.00 $45.00Step by Step Solution
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