Finding the market risk premium.

Calculate the cost of equity for a particular firm (Nordstrom JWN) using the CAPM. Their Beta is 1.25 and this is appropriate to use as the 10-year treasury bond rate which I found to be 3.68% as the risk free rate. However, to calculate the market risk premium, I need to ascertain the market rate. Where can I find this?

Active asset allocation among countries and performance against a world market index

In view of the efficient market hypothesis (EMH)in Investment analysis, I want to know whether active asset allocation among countries could consistently outperform a world market index (Yes or No and why). As a second part of my question, I want you to discuss the implications of integration versus segmentation of International Financial Markets as it pertains to Portfolio Diversification.Ignore the issue of stock selection.

Swap fixed rate (SFR) for a plain vanilla, two-year interest rate swap

What would be the swap fixed rate (SFR) for a plain vanilla, two-year interest rate swap, payments every six months beginning 07/01/0X, with the following assumptions/data: Swap initiation - January 1, 200X FRA1,0=2.221%; FRA1,1=2.258%; FRA1,2=2.322%; FRA1,3=2.388%;FRA1,4=2.520%;FRA1,5=2.632% (Read the notation, FRA1,0 as "six-month forward rate from 01/01/0X,FRA1,1 as "six-month forward rate, six months from 01/01/0X, FRA1,2 as "six-month forward rate, one-year from 01/01/0X, etc.) LIBOR to remain at 2.18%

Calculating hedging using future contracts and using the optimal hedge ratio

You wish to hedge 90 percent of the current portfolio value with futures. The value of the portfolio is $50 million and tracks the S&P 500 index. The index in 1,076.32 ($250 per point) and the portfolio has a beta of 1.2. Calculate the appropriate hedging using futures contracts. Hint: Calculate using the optimal hedge ratio.

Calculating fixed rate payments in interest rate swaps

Using the following data, calculated the fixed-rate payer's first two net quarterly payments/receipts for a hypothetical rate swap described below: Notional Principal $10 million Fixed Rate 7.0% Days in first quarter 91 Days in second quarter 92 Current LIBOR (LIBOR0) 5.0% Expected LIBOR (LIBOR1) 5.3% Expected LIBOR (LIBOR2) 4.8%