VoyForums
[ Show ]
Support VoyForums
[ Shrink ]
VoyForums Announcement: Programming and providing support for this service has been a labor of love since 1997. We are one of the few services online who values our users' privacy, and have never sold your information. We have even fought hard to defend your privacy in legal cases; however, we've done it with almost no financial support -- paying out of pocket to continue providing the service. Due to the issues imposed on us by advertisers, we also stopped hosting most ads on the forums many years ago. We hope you appreciate our efforts.

Show your support by donating any amount. (Note: We are still technically a for-profit company, so your contribution is not tax-deductible.) PayPal Acct: Feedback:

Donate to VoyForums (PayPal):

[ Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time | Archives: 1, [2], 3 ]

[ Next Thread | Previous Thread | Next Message | Previous Message ]

Date Posted: 17:25:08 10/08/00 Sun
Author: chad philpot
Subject: Re: take home quiz
In reply to: chris 's message, "Re: take home quiz" on 15:03:16 10/08/00 Sun

> > > Question on Answer for take home Quiz for Chap 5 #5
> > > and #6. Did anyone else get:
> > >
> > > 5 9.88
> > > 6 22.7
> >
> > I got 9.9% for #5, but am stuck on #6. How did you
> > get 22.7%?
>
> Inflation = 2.8%. I scanned the book and found which
> elements are affected by inflation. Added the
> inflationt to the appropriate elements and got:
>
> Krf = 5.7 + 2.8 = 9.5
> Mrp = 9.2 + 2.8 = 12
> B = 1.1
>
> Ki = 9.5 + 12(1.1)
> = 22.7
>
> Any disagreements?
I added the real riskfree rate and inflation + (mrp)(beta)
5.7+2.8+(9.2)(1.1)=18.62

I wanted to verify the remaining answers can some one respond.
1. C
2. B
3. expected return 8.25 standard dev 10.365
4. B
5. 9.89
6. 18.62
7. E

[ Next Thread | Previous Thread | Next Message | Previous Message ]

Replies:

[ Contact Forum Admin ]

Forum timezone: GMT-8
VF Version: 3.00b, ConfDB:
Before posting please read our privacy policy.
VoyForums(tm) is a Free Service from Voyager Info-Systems.
Copyright © 1998-2019 Voyager Info-Systems. All Rights Reserved.