We know that during the last 10 years, the average historical return on a market...
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Finance
We know that during the last 10 years, the average historical return on a market index is 12%. We also know that the average inflation rate and average risk-free rate over the last 10 years are 2% and 5%, respectively. What is the real risk premium using the exact Fisher equation?
Select one:
a. 2.94%
b. 6.86%
c. 7.00%
d. 9.80%
e. 10.00%
Given the following share price history, calculate the standard deviation of the returns on this stock.
Year
Share price
1
$35
2
$30
3
$39
4
$42
5
$45
Select one:
a. 0.18%
b. 5.89%
c. 18.08%
d. 3.27%
e. 1.81%
What is the geometric average return of a stock with the following share price history?
Year
Share price
1
$35
2
$30
3
$39
4
$42
5
$45
Select one:
a. 7.95%
b. 7.64%
c. 7.14%
d. 6.84%
e. 6.48%
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