You presently TOCK 15%. You calculate your real return on investment as 11.50 %. According t inflation must have been O 0.23% 3.50% 3.14% 7.67% 39.00Kr

Q: Consider the following investment in CURRENT DOLLARS The trem (minimum acceptable rate of return), m…

A: Real rate is the rate which excludes the impact of inflation in the economy, while nominal rates are…

Q: An investment had a nominal return of 10.6percent last year. If the real return on investment was…

A: Given the following information: Nominal return: 10.6% Return on investment or Real return: 6.3%

Q: Given a yield to maturity of 0.00045629%.   Assume the yield to maturity immediately increases 1%.…

A: Original YTM = 0.00045629℅ New YTM = 1.00045629℅ Treasury bill is a short term debt instrument.…

Q: If you receive a total return of 6% on your investment portfolio but inflation is running at 3% per…

A: Given the following information: Nominal return: 6% Inflation rate: 3%

Q: 7 East Boca Co. investors require 12% nominal return and the expected inflation rate is 2%, what is…

A: The inflation rate refers to the rate at which the value of the currency decreases over time and the…

Q: Netra invests Rs. 1 lakh in the money market and a got 5% return from there. The inflation rate is…

A: Inflation adjusted return is the rate of return after adjusting the inflation rate from the actual…

Q: An investment offers a total return of 10.0 percent over the coming year. Janice Yellen thinks the…

A: In this question, we are required to determine the rate of inflation.

Q: Rate of return. The level of the Syldavia market index is 21,000 at the start of the year and 22,000…

A: Real Return on Index = {(1+Nominal rate)/(1+inflation)}-1

Q: Calculate the effective annual return on fed funds that are 3 days from maturity and have a quoted…

A: Computation:

Q: If an investment grew by 9% while it had a change in purchasing power of 7%, what was the inflation…

A: Real Rate: It is the rate which the investor would receive by investing the money. The real rate of…

Q: If the nominal rate is 10% and the inflation rate is currently 4.2%, what is the real rate of…

A: Irving Fisher developed the economic theory known as the "Fisher Effect," which explains how…

Q: Whadden National Bark is undertaking statec GAP analysis. In the one yoar time bucket, it holds $43…

A: Strategic gap analysis is a business management technique that requires an evaluation of the…

Q: Suppose you pay $9,400 for a $10,000 par Treasury bill maturing in 6 months. What is HPR, APR and…

A: Price=$9400Face value=$10000Period=6months

Q: . Assume that you bought a Treasury bill at price=92.450 and sold two days later at 92.550.   What…

A: Holding period return is the total return received from holding an asset or portfolio of assets over…

Q: 4) If we require a 10% real return and we expect inflation to be 8%, what is the nominal rate based…

A: Real rate of return is inflation adjusted return after adjustment of inflation from the nominal…

Q: Investors expect to earn a return of 24.3% on Amalgamated Industries this year. Treasuries currently…

A: Expected return = 24.3% Treasuries yield = 3.4%

Q: What is your approximate real rate of return, if your portfolio generated nominal return of 9.87%…

A: Real rate of return means annual percentage return on investments and it is adjusted for inflation…

Q: The rate of inflation is 4.1%. What nominal rate of return will you need in order to achieve a 5.0%…

A: Nominal Rate of Return = {(1 + Real Interest Rate)} x {(1 + Inflation Rate)} - 1

Q: Suppose you pay $9,400 for a $10,000 par Treasury bill maturing in 6 months. What is the HPR, APR…

A: Price=$9400Face value=$10000Period=6 months

Q: Description FV = $1,000 V = $1,100 CR = 8% n= 10 years What is the yield to maturity?

A: FV = $ 1000 V = $ 1100 CR = 8% C = FV*CR    = 1000*0.08    = $ 80 n = 10 Years

Q: For investing, which rate is preferable, a semi-annual compounding at 5% or continuous compounding…

A: Calculation of continuous compounding rate: Excel spreadsheet:

Q: Suppose you postpone consumption and invest at 9% when inflation is 3%. What is the approximate real…

A: In this question, we are given:Total return / Nominal Return = 9%Inflation rate = 3%

Q: You are reviewing an investment with the following price history as of December 31steach year.…

A: Year Price 2016 1.45 2017 1.78 2018 1.26 2019 1.71 2020 1.91

Q: Nikole's investment in a savings account is earning 4.48% compounded quarterly and will be worth…

A: Simply put, present value is the current market value of a future sum of money. It is one of the key…

Q: An investment offers a total return of 10.0 percent over the coming year. Janice Yellen thinks the…

A: The inflation rate is calculated using following equation Inflation rate = 1+Nominal rate1+Real…

Q: Nominal and Real Returns An investment offers a total return of 12 percent over the coming year.…

A: Nominal rate of return = 12% Real rate of return = 9% The formula to calculate inflation rate is: (1…

Q: What is the (exact) nominal return on an investment that earns a real return of 14.7% while…

A: Solution:- Nominal rate of return means the rate of return inclusive the effect of inflation.

Q: r1=0.07, r2=0.065, r3=0.06, r4=0.05, r5=0.475, r6=0.04 Find current price P(t-0) with F=5000 with…

A: We can find the annual Y rate by taking the average of all 6-year rates. We can apply the formula to…

Q: How long will it take 51387.00 to accumulate to $1627.00 at 6% p.a. compounded semi-annually? Sue…

A: Given that, Present Value (PV)=$1,387 Future Value (FV)=$1,627 Interest rate (i)=6%/2=3% or 0.03…

Q: investment is considered with a commensurate risk premium of 5.6%. The current market growth rate is…

A: Risk Premium = 5.6% Risk Free Rate = 1.3% Growth rate = 2%

Q: If the volatility of Tesla is 2.74% per day, it will correspond to _____ per month.

A: Answer: B. 12.56%

Q: Based on economists' forecasts and analysis, 1-year Treasury bill rates and liquidity premiums for…

A: R10.65%E(2r1)1.80%L20.04%E(3r1)1.90%L30.08%E(4r1)2.20%L40.10%

Q: Suppose you buy a S10,000 face value T-bill maturing in one month for $9,800, what's your effective…

A: The effective annual rate of interest is the actual or the real rate of interest paid or received…

Q: b. The current market provides a return of 10% and treasury bills yields 3%. i. Calculate the…

A: In the given question we require to calculate the required rate of return of an asset using…

Q: Suppose you invest Rs 600 in IBM and Rs 400 in Merc for a month. If the realized return is 2.5% on…

A: Overall return (%) on portfolio can be calculated as: = Sum of return on both the stocks / Initial…

Q: You have the following Yield to maturities on Zero-coupon T-bills for 1000 par:  Year YTM 1…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…