Please calculate John's after rate return and show me the equation you did for it in excel as well.
X5 JX A B E F G H K 1 2 3 QUESTION # 5 (10 Points) Investment Real Rate of Return Given the following information: John Stevenson is a 27 year old investor who typically invest in the S&P 500 Index ETF Fund, SPY. U.S. Fed fund rate was just recently lower by another 25 basis point to 0.45%. Risk-free rate @ 0.958% 4 5 6 7 TECH WATCHLIST PRO & 8 CNBC MARKETS BUSINESS INVESTING POLITICS CNBC TV SPDR S&P 500 ETF Trust (SPY:NYSE Arca) Real Time Quote Last NYSE Arca. VOL From CTA I USD WATCHLIST 9 Extended Hours 11/13/2020 10 Volume 10,147,778 358.33 +0.23 (+0.06%) 11 Closel 11/13/2020 Volume 52 week range 12 358.10 +4.89 (+1.38%) 51,305,573 218.26 - 364.38 13 1D SD 1M 3M M YTD 1Y 5Y ALL 14 + Comparison Display Studies 15 16 30000 17 275.00 18 25000 X5 Jx A B D E F G H j K Close 11/13/2020 Volume 52 weel range 12 358.10 +4.89 (+1.38%) 51,305,573 218.26 - 364.38 13 1D 5D 1M 3M 6M YTD TY 5Y ALL 14 + Comparison 0 Display Studies 2 15 325 00 16 - 30000 17 275.00 18 25000 -225.00 19 Dec 2020 Feb Mar Apr May Jul Aug Sep Oct Nov 20 SUMMARY NEWS PROFILE KEY STATS 21 Open 355.27 52 Week High 364.38 Market Cap 315.20 2% 5% 22 Day High 358.90 52 WK HI Date 2020-11-09 Shares Out 380.1M 23 5% Day Low 354.71 52 Week Low 218.26 5.68 24 93.5M 10D Avg Vol 52 WK Lo Date 2020-03-23 Dividend (TTM) DIV Yield (TTM) 1 Year %Chg 1.599 6 25 Beta 1.01 YTDChg 11.26 15.68 % 26 Expense Ratio 0.09 27 28 29 30 211 K L M N O Q R S U V w X Y Z AA AB 1 2 3 4 SPY. 5 6 7 8 On the YTD November 13, 2020, the SPY Investment Return 11.26% 9 Risk-free rate 0.958% 10 Fed fund rate 0.45% 11 Current U.S. Annual Inflation Rate 1.7% 12 John's Tax Bracket 32.00% 13 14 Culate John's after-tax real rate of return = 15 16 17 X5 JX A B E F G H K 1 2 3 QUESTION # 5 (10 Points) Investment Real Rate of Return Given the following information: John Stevenson is a 27 year old investor who typically invest in the S&P 500 Index ETF Fund, SPY. U.S. Fed fund rate was just recently lower by another 25 basis point to 0.45%. Risk-free rate @ 0.958% 4 5 6 7 TECH WATCHLIST PRO & 8 CNBC MARKETS BUSINESS INVESTING POLITICS CNBC TV SPDR S&P 500 ETF Trust (SPY:NYSE Arca) Real Time Quote Last NYSE Arca. VOL From CTA I USD WATCHLIST 9 Extended Hours 11/13/2020 10 Volume 10,147,778 358.33 +0.23 (+0.06%) 11 Closel 11/13/2020 Volume 52 week range 12 358.10 +4.89 (+1.38%) 51,305,573 218.26 - 364.38 13 1D SD 1M 3M M YTD 1Y 5Y ALL 14 + Comparison Display Studies 15 16 30000 17 275.00 18 25000 X5 Jx A B D E F G H j K Close 11/13/2020 Volume 52 weel range 12 358.10 +4.89 (+1.38%) 51,305,573 218.26 - 364.38 13 1D 5D 1M 3M 6M YTD TY 5Y ALL 14 + Comparison 0 Display Studies 2 15 325 00 16 - 30000 17 275.00 18 25000 -225.00 19 Dec 2020 Feb Mar Apr May Jul Aug Sep Oct Nov 20 SUMMARY NEWS PROFILE KEY STATS 21 Open 355.27 52 Week High 364.38 Market Cap 315.20 2% 5% 22 Day High 358.90 52 WK HI Date 2020-11-09 Shares Out 380.1M 23 5% Day Low 354.71 52 Week Low 218.26 5.68 24 93.5M 10D Avg Vol 52 WK Lo Date 2020-03-23 Dividend (TTM) DIV Yield (TTM) 1 Year %Chg 1.599 6 25 Beta 1.01 YTDChg 11.26 15.68 % 26 Expense Ratio 0.09 27 28 29 30 211 K L M N O Q R S U V w X Y Z AA AB 1 2 3 4 SPY. 5 6 7 8 On the YTD November 13, 2020, the SPY Investment Return 11.26% 9 Risk-free rate 0.958% 10 Fed fund rate 0.45% 11 Current U.S. Annual Inflation Rate 1.7% 12 John's Tax Bracket 32.00% 13 14 Culate John's after-tax real rate of return = 15 16 17
