1. The Walt Disney Company has a beta of 1.33. What is the interpretation of this resulting number?
2. Assume that the real risk free rate is constant at 1.5 %. The yield is 2.3% on 1-year treasury, 3.0% on 2-year treasury, 3.5% on 3-year treasury, and 5.0% on 5-year treasury securities.
What is the expected rate of inflation in year 2?
3. Assume that the real risk free rate is constant at 1.5 %. The yield is 2.3% on 1-year treasury, 3.0% on 2-year treasury, 3.5% on 3-year treasury, and 5.0% on 5-year treasury securities.
What is the expected rate on three year treasury securities, 2 years from now?