QUESTION 18 At the beginning of 2021, you decide to sell bond position and invest in S&P 500. Past 10 year of S&P 500 dividend yield, total return and risk free rate are shown as follows. Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Dividend yield 2.13% 2.20% 1.94% 1.92% 2.11% 2.03% 1.84% 2.09% 1.83% 1.58% Total Return 2.11% 16% 32.39% 13.69% 1.38% 11.96% 21.83% -4.38% 31.49% 18.40% Risk free rate (10 year) 2.78% 1.80% 2.35% 2.54% 2.14% 1.84% 2.33% 2.91% 2.14% 0.89% Q1: What is the average risk premium in percentage term from 2011 to 2020? (hint: copy paste the whole table to excel and use excel function)
QUESTION 18 At the beginning of 2021, you decide to sell bond position and invest in S&P 500. Past 10 year of S&P 500 dividend yield, total return and risk free rate are shown as follows. Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Dividend yield 2.13% 2.20% 1.94% 1.92% 2.11% 2.03% 1.84% 2.09% 1.83% 1.58% Total Return 2.11% 16% 32.39% 13.69% 1.38% 11.96% 21.83% -4.38% 31.49% 18.40% Risk free rate (10 year) 2.78% 1.80% 2.35% 2.54% 2.14% 1.84% 2.33% 2.91% 2.14% 0.89% Q1: What is the average risk premium in percentage term from 2011 to 2020? (hint: copy paste the whole table to excel and use excel function)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
QUESTION 18
-
At the beginning of 2021, you decide to sell bond position and invest in S&P 500. Past 10 year of S&P 500 dividend yield, total return and risk free rate are shown as follows.
Year 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Dividend yield 2.13% 2.20% 1.94% 1.92% 2.11% 2.03% 1.84% 2.09% 1.83% 1.58% Total Return 2.11% 16% 32.39% 13.69% 1.38% 11.96% 21.83% -4.38% 31.49% 18.40% Risk free rate (10 year) 2.78% 1.80% 2.35% 2.54% 2.14% 1.84% 2.33% 2.91% 2.14% 0.89% Q1: What is the average risk premium in percentage term from 2011 to 2020? (hint: copy paste the whole table to excel and use excel function)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education