Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 13, 2024

Sarah earned a 9.6 percent nominal rate of return on her investments for the past year. During that time, the risk-free rate was 3.3 percent

Sarah earned a 9.6 percent nominal rate of return on her investments for the past year. During that time, the risk-free rate was 3.3 percent and the inflation rate was 2.0 percent.

What was her real rate of return? %

What was Sarah's risk premium? %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

Step: 3

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

Handbook On Second Lien Loans & Intercreditor Agreements

Authors: Mark N. Berman, Jo Ann J. Brighton

1st Edition

0981865593, 978-0981865591

More Books

Students also viewed these Finance questions

Question

★★★★★

Name and describe the various categories of feasibility analysis.

Answered: 1 week ago

Question

★★★★★

Do you think that criminal procedure in this country is weighted too heavily in favor of accused persons? Can you think of a fairer way to balance the constitutional rights of accused persons against...

Answered: 1 week ago

Question

★★★★★

What application architecture does your university use for email? Explain.

Answered: 1 week ago

Question

★★★★★

Calculating the Number of Periods youre trying to save to buy a new $170,000 Ferrari. You have $40,000 today that can be invested at your bank. The bank pays 6.2 percent annual interest on its...

Answered: 1 week ago

Question

★★★★★

Sarah earned a 9.6 percent nominal rate of return on her investments for the past year. During that time, the risk-free rate was 3.3 percent and the inflation rate was 2.0 percent. What was her real...

Answered: 1 week ago

Question

★★★★★

abc co.had following assets and liabilities liabilities- bank loan $400, accounts payable $40, assets cash $100, accounts receivable$90 land $300 the land would be valued at...... a) historic cost...

Answered: 1 week ago

Question

★★★★★

Which techniques are recommended when communicating data-informed decisions? Select all that apply. a. Defining the problem. b. Assigning blame for the problem. c. Supporting the solution with data....

Answered: 1 week ago

Question

★★★★★

To which QoS policy action is the RADIUS attribute format "bw-rpct" equivalent? bandwidth bandwidth percentage bandwidth remaining percent bandwidth allowed

Answered: 1 week ago

Question

★★★★★

Heidi has been a client for some years, operating a traditional retail business. She has now made the decision to operate online as well and seeks your advice as to undertaking online transactions....

Answered: 1 week ago

Question

★★★★★

In late 2018, Mike was approached by a representative of a company called Cycle Tech Inc. (CTI) and asked if he would be interested in incorporating its proprietary technology, CycleScape, into PHL's...

Answered: 1 week ago

Question

★★★★★

NAPSTER'S REVOLUTION Eighteen - year old Shawn "NAPSTER" Fanning, then a freshman at Northeastern University, dropped out of school and founded Napster Inc. (website was at w.w.w.napster.com) in San...

Answered: 1 week ago

Question

★★★★★

1 Learning from some of the measures taken by Eskom, AECI and Germiston City Council, what could a foreign company like Colgate Palmolive do to contribute to the development of human potential within...

Answered: 1 week ago

Question

★★★★★

Achievementascription. Quite often more traditional societies accord status according to ascription. Again, this may influence recruitment and promotion policies that may be at variance with...

Answered: 1 week ago

Question

★★★★★

Indian managers at both middle and senior levels in organizations profess a belief in group-based, participative decision making, but have little faith in the capacity of workers for taking...

Answered: 1 week ago

Previous Question Next Question