--%>
Assignment Help - homework help

Continuously compounded rate of return

Solve for the stated annual rate, r equal to the continuously compounded rate of return implicit in turning $1 at the end of 1925 (beginning of 1926) into these reported valued from RWJ9 in 2008 Figure below:

1. Determine the stated continuously compounded rate of return on small cap stocks?

2. Find out the stated continuously compounded rate of return on large cap stocks?

3. Find out the stated continuously compounded rate of return on Long-term Government Bonds?

4. Find out the stated continuously compounded rate of return on Treasury bills?

5. Evaluate the stated continuously compounded rate of return on Inflation

6. Describe the risk premium on large cap stocks relative to “riskless” Treasury bills?

7. Briefly explain, how did Treasury bills perform relative to inflation?

8. Draw a general conclusion from your computations

867_compound rate.jpg

   Related Questions in Corporate Finance

  • Q : Illustrates reserves are real money or

    The part of the net income which is not distributed to shareholders goes to reserves (to shareholders’ equity). As dividends shows real money, reserves are real money as well. Is it true?

    		•
  • Q : Which frame work does not give very

    Which model of frame work does not provide the very good prices for bonds?

    		•
  • Q : Relationship between flow to

    Is there any relationship in between the flow to shareholders and the net income?

    		•
  • Q : What is the Capital Cash Flow What is

    What is the Capital Cash Flow?

    		•
  • Q : Selling or purchasing problem Atlas

    Atlas Realty Company is interested in buying a house and renting it out for $12,000 a year, collecting the rent in advance each year. This will depreciate the house over 25 years; however sell it after 15 years at twice its purchase price. The maintenance expenditures

    		•
  • Q : Which method must use to valuate young

    Which method must we use to valuate young companies along with high growth but uncertain futures? Two illustrations were Boston Chicken and Telepizza while they began.

    		•
  • Q : How can auditor spot acts of creative

    How can auditor spot acts of creative accounting? Means let an illustration, the excess of provisions or the non-elimination of intra group transactions along with value added.

    		•
  • Q : Which parameter good measures value

    Which parameter good measures value creation; the Economic Value Added (EVA), the CVA (Cash Value Added) or the economic profit?

    		•
  • Q : Relationship between the preferred

    Quetion: A private equity fund invests $100 million into a portfolio company and receives 100% of the preferred stock and 80% of the common stock of the company.  The preferred stock carries a face value of $1

    		•
  • Q : Calculated betas when they give

    Calculated betas give different information if they are acquired by using weekly, monthly or daily data.

    		•