Average Return The past five monthly returns for Kohls are 4.11 percent, 3.62 percent, 2 1.68 percent, 9.25 percent, and 22.56 percent. What is the average monthly return?

Q: If the EAR= 6.25 percent, and there are 115 compounding periods per year, what is the APR (in…

A: The nominal return refers to the return that is quoted to the investor and does not consider the…

Q: What would be the annual percentage yield for a savings account that earned $60.00 in interest on…

A: Annual Precentage Yield = (Annual interest / Principal amount ) x 100Note : 365 days = 1 year

Q: The past five monthly returns for Kohl's are -4.11 percent, 3.62 percent, -1.68 percent, 9.25…

A: Computation:

Q: The past five monthly returns for Kohls are 3.86 percent, 4.42 percent, -2.00 percent, 9.41 percent,…

A: Average return refers to the average rate of return earned on an investment over a certain period of…

Q: If the one-year spot rate is 7 percent and the two-year spot rate is 8.5 per- cent, what is the…

A: One-year forward rate over the second year is (1+two year spot rate)^2/(1+one year spot rate) -1

Q: Find the simple interest on $31,200 at 5.25% for 107 days. Assume 360 days in a year and 30 days in…

A: Simple interest is a method of calculating interest where the principal remains the same for each…

Q: The past five monthly returns for PG&E are −3.47 percent, 4.63 percent, 4.07 percent, 6.92…

A: The returns for previous five months are -3.47%, 4.63%, 4.07%, 6.92% and 3.88%.

Q: At the end of each quarter, a life insurance client deposits Ph 6,176 for 5 years. If money is worth…

A: Quarterly deposit (P) = Ph 6,176 Interest rate = 5.3% Quarterly interest rate (r) = 5.3%/4 = 1.325%…

Q: The past five monthly returns for PG&E are -3.25 percent, 4.08 percent, 3.85 percent, 6.59 percent,…

A: The rate of return that an investor is expected to earn from the investment is term as the expected…

Q: Given the rate per compounding period, find r, the annual rate 0.25% per month

A: P =R / M Here P = Rate per compounding period R= Annual rate M=Times amount compounded

Q: find the effective rate for an investing earning 3.15% per year. compounded quarterly

A: Using excel Effective rate function

Q: What is the geometric average return of the following quarterly returns: 7%, 5%, 8%, and 8% ? Enter…

A: The geometric average return is calculated using the following equationGeometric average return =…

Q: 8. Find the nominal rate under which $3500 is the present value of $5000, due at the end of 123…

A: Note: I am suppose to provide the solution of one question at a time. Please repost the remaining…

Q: Determine how much is in the account on the basis of the indicated compounding after the specified…

A:

Q: What is the Effective Annual Return (EAR) if the Annual Percentage Rate (APR) is 15% compounded…

A: Effective annual return is the rate of return on the investment after taking the effects of…

Q: If the monthly rate is 6.08 %, what is the APR? Enter your answer using percent expression with two…

A: Compound = n = Monthly = 12Interest Rate = r = 6.08%

Q: Assume a discount rate of 7 percent and calculate the effective rent over three years when net rent…

A: YearsRent amount1$232$413$55Discount rate=7%Required:Effective Rent=?

Q: average monthly return?

A: Average Return: average return is the average expected return from an investment it is calculated…

Q: Complete the following using the financial calculator: (Round your final answer to the nearest…

A: Compounding is the method through which income from an asset, such as interest or capital gains, is…

Q: P100 is received at the end of one year, P500 at the end of two years, and P1000 at the end of three…

A: Present value is the sum of discount value of all future cash flows.

Q: What is the effective annual rate (EAR) of 8% per year, compounded monthly? Select one: O a. 8.66 %…

A: Nominal Interest Rate (r) is 8% Compounding Period is (m) is Monthly i.e. 12

Q: What rate compounded monthly will yield the effective rate 19.75%?

A: Effective annual interest rate (EAR) refers to the real rate of return that we earn on our savings…

Q: Account A has a monthly rate of 0.4%.  Account B has a quarterly rate of 1.2%.  All else equal,…

A: APR stands for annual percentage rate. This is the annual rate without taking the compounding…

Q: A perpetuity pays $85 per year and costs $950. What is the rate of return? 8.95% 9.39% 9.86%…

A: The objective of the question is to calculate the rate of return on a perpetuity. A perpetuity is a…

Q: Determine how much is in each account on the basis of the indicated compounding after the specified…

A: initial Principal Value is 7200 The interest rate is 2.5% The time period is 1 year To Find:…

Q: Given a monthly rate of 1%, the Annual Percentage Rate (APR) is ______ and the Effective Annual Rate…

A: Annual Percentage Rate (APR) - It is the rate that charged annually to the Investment. It is same…

Q: f i 5.8% per semiannual, compounded monthly, What is the nominal quarter rat

A: solution concept semi annual rate means the rate that is quoted for 6 months in compound interest…

Q: Annuity X pays $115 at each year-end for 3 years. Annuity Y pays $105 at the beginning  of each year…

A: An annuity refers to a series of periodic payments made in exchange for a lump sum payment.…

Q: The returns from an investment are 1% in Year 1, 5% in Year 2, and 3.8% in the first half of Year 3.…

A: The annualized return is a measure of the average annual gain or loss on an investment over a…

Q: What is the periodic interest rate for an APR of 23% with daily compounding? Enter your answer…

A: Compound = n = Daily = 365Interest Rate = r = 23%

Q: Which of the following would represent a correct calculation of interest earned on a six month, $100…

A: INCOME STATEMENTIncome Statement is one of the Important Financial Statement of the Company. Income…

Q: The past five monthly returns for Kohls are 4.11 percent, 3.62 percent, −1.68 percent, 9.25 percent,…

A: Number of returns (n) = 5   Average return is know as arithmetic average return.

Q: What is the effective annual rate for an APR of 15.70 percent compounded monthly?

A: The effective annual Rate will be computed according to the formula..... i=(1+rm)m−1.. Where rm…

Q: 1000 dollars is deposited into an account at the beginning of the year and the value at the end of…

A: The future value of cash flow is the future worth of a cash flow at a certain rate of interest and…

Q: Find the effective yield of an investment that earns 5.2% compounded monthly.

A: The effective yield, also known as the annual equivalent rate (AER) or annual percentage yield…

Q: Find the effective rate corresponding to the given nominal rate. (Use a 365-day year.) 6%/year…

A: Return on investment is the rate of amount received each period of investment compared to the…

Q: Determine how much is in each account on the basis of the indicated compounding after the specified…

A: As per the given information: Initial Principal value = $5800Interest rate = 6.8%Time period = 1…

Q: (b) Calculate the annual rate of return. (Round answer to 2 decimal places, e.g. 15.25%.) Annual…

A: The rate of return refers to the profit earned on an investment made by the investor. It is…

Q: If effective annual rate is 20%, calculate annual percentage rate, compounded monthly. If the answer…

A: The objective of the question is to calculate the annual percentage rate (APR) given the effective…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.