Question
Please do them all not only 1 all the answers are given i need only calculations for all. 45. Market interest rates have risen substantially
Please do them all not only 1
all the answers are given i need only calculations for all.
45. Market interest rates have risen substantially in the five years since an investor purchased Treasury bonds that were offering a 7 percent return. If the investor sells now she is likely to receive: A. greater than a 7 percent total return. B. less than a 7 percent total return. C. a 7 percent total rate of return. D. a 7 percent nominal return but less than a 7 percent real return.
Explanation:
27. From a historical perspective (1926-2014), what would you expect to be the approximate return on a diversified portfolio of common stocks in a year that Treasury bills offered 7.5 percent? A. 8.5 percent B. 12.5 percent C. 14.5 percent D. 19.5 percent
29. Most of the beneficial effects of diversification will have been received by the time a portfolio of common stocks contains _____ stocks. A. 2 B. 5 C. 20 D. 50
Explanation:
41. In a year in which common stocks offered an average return of 18 percent, Treasury bonds offered 10 percent and Treasury bills offered 7 percent, the risk premium for common stocks was: A. 1 percent. B. 3 percent. C. 8 percent. D. 11 percent.
Explanation:
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