PELLYKW3A4chapter10individual problems

# PELLYKW3A4chapter10individual problems - Average T-bill...

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Chapter 10 Problems 4, 6, 10, 18 ,19 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-in" be installed in Excel. To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak" and "Solver Add-In."

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Chapter 10 Question 4 Input area: Coupon paid \$1,090 Initial price \$1,000 Ending price \$1,056 Inflation rate 3.00% Output area: a. Dollar return \$1,146.00 b. Nominal return 114.60% c. Real return 108.35%
Chapter 10 Question 6 Input area: Long-term government 4.30% Long-term corporate 9.50% Inflation rate 5.20% Output area: Real long-term government return -0.86% Real long-term corporate return 4.09%

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Chapter 10 Question 10 Input area: Stock return 11.20% Average inflation 4.30%

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Unformatted text preview: Average T-bill rate 5.20% Output area: a. Average real return 6.62% b. Average nominal risk premium 6.00% Chapter 10 Question 18 Input area: Average return 142.90% Standard deviation 33.00% Output area: Range Lower return Upper return 68 percent 109.90% 175.90% 95 percent 76.90% 208.90% Chapter 10 Question 19 Input area: Year Returns 1 19% 2-27% 3 6% 4 34% Average return 11% Output area: Sum of all returns 55.00% Sum of known returns 32.00% Missing return 23.00% X Deviation 1 0.19 0.11 0.08 0.00640 2 (0.27) 0.11 (0.38) 0.14440 3 0.06 0.11 (0.05) 0.00250 4 0.34 0.11 0.23 0.05290 5 0.23 0.11 0.12 0.01440 Total 0.55 0.22060 Average return 0.1100 Variance 0.055150 Standard Deviation 23.48% Actual Return Average Return Squared Deviation...
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## This note was uploaded on 02/12/2012 for the course MBA 551 taught by Professor Smith during the Spring '11 term at Indiana Wesleyan.

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PELLYKW3A4chapter10individual problems - Average T-bill...

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