Question
In: Finance
The following historic data are available for the S&P 500 and AAPL:
The following historic data are available for the S&P 500 and AAPL:
30 year Arithmetic Average Return for S&P 500 =10%
30 year Arithmetic Average Return for AAPL = 12%
30 year Arithmetic Average Return on treasury bonds = 5%
On an ex post basis, what is the Risk Premium on the Market?
On an ex post basis, what is the Risk Premium for AAPL?
On an ex post basis, what is the Risk Premium for treasury bonds?
Solutions
Expert Solution
On an ex post basis, what is the Risk Premium on the
Market?
=10%-5%
=5.0000%
On an ex post basis, what is the Risk Premium for AAPL?
=12%-5%
=7.0000%
On an ex post basis, what is the Risk Premium for treasury
bonds?
=0
jeff jeffy answered 2 years agoRelated Solutions
Week Date Apple Inc. (AAPL) McDonald's Corporation (MCD) Southwest Airlines Co. (LUV) S&P 500 Index (GSPC)...
Week
Date
Apple Inc. (AAPL)
McDonald's Corporation (MCD)
Southwest Airlines Co. (LUV)
S&P 500 Index (GSPC)
1
30-Oct-17
2
6-Nov-17
1.2549%
-1.8187%
-1.1872%
-0.2141%
3
13-Nov-17
-2.2355%
0.6847%
2.2714%
-0.1336%
4
20-Nov-17
2.8316%
1.4330%
0.7893%
0.9140%
5
27-Nov-17
-2.2409%
2.2269%
8.6687%
1.5293%
6
4-Dec-17
-0.9841%
0.7554%
5.6980%
0.3512%
7
11-Dec-17
2.7198%
0.5289%
2.3625%
0.9168%
8
18-Dec-17
0.5968%
-1.5205%
1.9672%
0.2814%
9
25-Dec-17
-3.3001%
0.4109%
-0.7899%
-0.3626%
10
1-Jan-18
3.4068%
1.1225%
-1.7302%
2.6010%
11
8-Jan-18
1.1923%
-0.2775%
1.6204%
1.5708%
12
15-Jan-18...
The following data is provided for the S&P 500 Index: Year Total Return Year Total Return...
The following data is provided for the S&P 500 Index:
Year
Total Return
Year
Total Return
1988
16.81%
1998
28.58%
1989
31.49%
1999
21.04%
1990
-3.17%
2000
-9.11%
1991
30.55%
2001
-11.88%
1992
7.67%
2002
-22.10%
1993
9.99%
2003
28.70%
1994
1.31%
2004
10.87%
1995
37.43%
2005
4.91%
1996
23.07%
2006
15.80%
1997
33.36%
2007
5.49%
Refer to the information above. Calculate the 20-year arithmetic
average annual rate of return on the S&P 500 Index.
Question 22 options:
13.04%
11.81%...
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Use the following data for questions 19 and 20 Month Nike
S&P 500 Index Prices Prices Jan-13 52.90 2,279 Feb-13 57.16
2,364 Mar-13 55.73 2,363 Apr-13 55.41 2,384 May-13 52.99 2,412
Jun-13 59.00 2,423 Jul-13 59.05 2,470 Aug-13 52.81 2,472 Sep-13
51.85 2,519 Oct-13 54.99 2,575 Nov-13 60.42 2,648 Dec-13 62.55
2,674 Jan-14 68.22 2,824 What is the standard deviation of monthly
percentage returns for the S&P 500? a. 1.64% b. 6.7% c. 1.81%
d. 2.53%
For the prices presented...
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The Excel file Stock Data contains monthly
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Compute the cost of equity (required rate of return) for Cin
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Compute the Weighted Average Cost of Capital (WACC) for Cin
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market).
Compute Beta for NT and the S & P 500 using the
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Compute the equation: Ri= ai +
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The S&P 500, or simply the S&P, is a stock market index that measures the stock...
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that measures the stock performance of 500 large companies listed
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define an adequate investment strategy, and select the assets
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Consider historical data showing that the average annual rate of return on the S&P 500 portfolio...
Consider historical data showing that the average annual rate
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Calculate the expected return and variance of portfolios
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Consider historical data showing that the average annual rate of return on the S&P 500 portfolio...
Consider historical data showing that the average annual rate of
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Consider historical data showing that the average annual rate of return on the S&P 500 portfolio...
Consider historical data showing that the average annual rate of
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averaged roughly 8% more than the Treasury bill return and that the
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Calculate the utility levels of each portfolio for an investor with
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