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Question
Consider the following average annual returns:| Investment | Average Return |
| Small Stocks | 23.2% |
| S&P 500 | 13.2% |
| Corporate Bonds | 7.5% |
| Treasury Bonds | 6.2% |
| Treasury Bills | 4.8% |
What is the excess return for the S&P 500?
A) 5.7%
B) 7.0%
C) 0%
D) 8.4%
Answer
This answer is hidden. It contains 167 characters.
Related questions
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2
3
4
5 Investment
100
75
120
60
80 NPV
23
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15
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Q:
Nielson Motors has a debt-equity ratio of 1.8, an equity beta of 1.6, and a debt beta of 0.20. It is currently evaluating the following projects, none of which would change Nielson's volatility. Project
1
2
3
4
5 Investment
100
75
120
60
80 NPV
23
12
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Q:
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Q:
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Q:
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Q:
Money that has been or will be paid regardless of the decision whether or not to proceed with the project is: A) cannibalization. B) considered as part of the initial investment in the project. C) an opportunity cost. D) a sunk cost.