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The following table shows the nominal returns on Brazilian stocks and the rat Year Nominal Return (§) Inflation (3) 2012 6.7 2013 6.8 2014 7.3 2015 11.6 2016 7.2 2017 3.8 0.4 -18.0 -16.0 -42.3 67.1 27.8

The following table shows the nominal returns on Brazilian stocks and the rat Year Nominal Return (§) Inflation (3) 2012 6.7 2013 6.8 2014 7.3 2015 11.6 2016 7.2 2017 3.8 0.4 -18.0 -16.0 -42.3 67.1 27.8

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Year Nominal Return () 2012 2013 2014 2015 2016 2017 0.4 -18.0 -16.0 -42.3 67.1 27.8 Standard deviation Inflation (3) 6.7 6.8 7.3 11.6 a. What was the standard deviation of the market returns? (Use decimals, not percents, in your calculations. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) 7.2 3.8 Average real return % b. Calculate the average real return. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places) %
Transcribed Image Text:The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Year Nominal Return () 2012 2013 2014 2015 2016 2017 0.4 -18.0 -16.0 -42.3 67.1 27.8 Standard deviation Inflation (3) 6.7 6.8 7.3 11.6 a. What was the standard deviation of the market returns? (Use decimals, not percents, in your calculations. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) 7.2 3.8 Average real return % b. Calculate the average real return. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places) %
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