Questions from Corporate Finance

Q: What would a technical analyst say about market efficiency?

What would a technical analyst say about market efficiency?

Q: Suppose the average inflation rate over this period was 4.2

Suppose the average inflation rate over this period was 4.2 percent, and the average T-bill rate over the period was 5.1 percent, what was the average real risk-free rate over this time period? What w...

Q: Titan Mining Corporation has 9.3 million shares of common stock

Titan Mining Corporation has 9.3 million shares of common stock outstanding and 260,000 6.8 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $34 per sh...

Q: What was the arithmetic average annual return on large-company stocks

What was the arithmetic average annual return on large-company stocks from 1926 through 2011? a. In nominal terms? b. In real terms?

Q: A technical analysis tool that is sometimes used to predict market movements

A technical analysis tool that is sometimes used to predict market movements is an investor sentiment index. AAII, the American Association of Individual Investors, publishes an investor sentiment ind...

Q: A stock has had returns of 16.12 percent, 12

A stock has had returns of 16.12 percent, 12.11 percent, 5.83 percent, 26.14 percent, and −13.19 percent over the past five years, respectively. What was the holding period return for the stock?

Q: A stock has an expected return of 10.2 percent,

A stock has an expected return of 10.2 percent, the risk-free rate is 4 percent, and the market risk premium is 7 percent. What must the beta of this stock be?

Q: Describe the difference between systematic risk and unsystematic risk.

Describe the difference between systematic risk and unsystematic risk.

Q: An all-equity firm is considering the following projects:

An all-equity firm is considering the following projects: The T-bill rate is 3.5 percent, and the expected return on the market is 11 percent. a. Which projects have a higher expected return than th...

Q: In the middle to late 1990s, the performance of the pros

In the middle to late 1990s, the performance of the pros was unusually poor—on the order of 90 percent of all equity mutual funds underperformed a passively managed index fund. How does this bear on t...