Suppose the nominal rate of return is 0.085 and the risk-free rate is 0.010. What is the risk premium? nstruction: Round to two decimal places. E.g., if your answer is 0.0106465 or 1.06465%, you should type ONLY the number .01, neither 0.0106465, 0106, nor 1.065. Otherwise, Blackboard will treat it as a wrong answer.

Hydro Ottawa has two options for upgrading a natural gas power station to meet new government standards. Option 1: Hydro Ottawa will make the upgrades themselves. This is expected to cost $12,700 at the end of each month for 12 years. At the end of the operation (in 12 years) Hydro Ottawa expects to sell all equipment needed for the upgrade for $122,000. Option 2: Pay experienced contractors. This will cost $28,000 up front and $13,900 monthly (at the end of every month) for 15 years. Assume all interest is 3.72% compounded monthly. Round the answers to NPV (Option 1), and NPV (Option 2) to the nearest dollar. Round all other answers to two decimal places where applicable. 1) Find the net present value of option 1: P/Y = C/Y = N = I/Y = PV = PMT= FV = Payments (Cost) GA % Sale of equipment (Residual) GA GA LA %

Please don't provide handwritten solution ....

What is the risk neutral probability of state 1?

Hi, the first part of this question was not answered. Here is is: There is another security, C, whose payoff at t=1 is equal to $300 in the weak state and$600 in the strong state. - Find the no-arbitrage price (at t=0) of security C. - Find the rate of return for security C

Moving to another question will save this response. Quèstion 7 What is the other name for fim-specific risk? O Systematic risk O Market risk O Micro-cap risk O Undiversifiable risk O Diversifiable risk A Moving to another question will save this response. Mac 20 F3 O00 DO0 F4 esc F1 F2 #3 2$ 2 4 W E R

The NPV profile: O A. shows the payback period the point at which NPV is positive. O B. shows the internal rate of return the point at which NPV is zero. OC. shows the NPV over a range of discount rates. O D. B and C are correct.

Asset W has an expected return of 12.3 percent and a beta of 1.2. If the risk-free rate is 4 percent, complete the following table for portfolios of Asset W and a risk-free asset. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your expected return answers as a percent rounded to 4 decimal places, e.g., 32.1623, and beta answers to 3 decimal places, e.g., 32.161.) > Answer is complete but not entirely correct. Percentage of Portfolio in Asset W % 0 25 50 75 100 125 150 Portfolio Expected Return 4.0000 % 6.0750X % 8.1500 X % 10.2250 % 12.3000 x % 14.3750 % 16.4500 X % Portfolio Beta 0 0.300 0.600 0.900 1.200 1.500 1.800