The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Nominal Return (%) Year Inflation (%) 2012 0.3 7.1 2013 -13.0 7.2 2014 -11.0 7.7 2015 -42.7 12.0 2016 67.5 7.6 2017 28.2 4.2 a. What was the standard deviation of the market retuns? (Use decimals, not percents, in your calculations. Do not ro intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Standard deviation b. Calculate the average real return. (A negative answer should be indicated by a minus sign. Do not round intermediat calculations. Enter your answer as a percent rounded to 2 decimal places) Average real return
The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Nominal Return (%) Year Inflation (%) 2012 0.3 7.1 2013 -13.0 7.2 2014 -11.0 7.7 2015 -42.7 12.0 2016 67.5 7.6 2017 28.2 4.2 a. What was the standard deviation of the market retuns? (Use decimals, not percents, in your calculations. Do not ro intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Standard deviation b. Calculate the average real return. (A negative answer should be indicated by a minus sign. Do not round intermediat calculations. Enter your answer as a percent rounded to 2 decimal places) Average real return
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
Problem 1PS
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Question
![The following table shows the nominal returns on Brazilian stocks and the rate of inflation.
Nominal Return (%)
Year
Inflation (%)
2012
0.3
7.1
2013
-13.0
7.2
2014
-11.0
7.7
2015
-42.7
12.0
2016
67.5
7.6
2017
28.2
4.2
a. What was the standard deviation of the market retuns? (Use decimals, not percents, in your calculations. Do not ro
intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Standard deviation
b. Calculate the average real return. (A negative answer should be indicated by a minus sign. Do not round intermediat
calculations. Enter your answer as a percent rounded to 2 decimal places)
Average real return](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F74a306ae-1d6f-4f57-b9d2-2c6dadfb14ef%2F779f5809-3ddb-471f-ad6e-99587d9cdede%2Fd00vqk.jpeg&w=3840&q=75)
Transcribed Image Text:The following table shows the nominal returns on Brazilian stocks and the rate of inflation.
Nominal Return (%)
Year
Inflation (%)
2012
0.3
7.1
2013
-13.0
7.2
2014
-11.0
7.7
2015
-42.7
12.0
2016
67.5
7.6
2017
28.2
4.2
a. What was the standard deviation of the market retuns? (Use decimals, not percents, in your calculations. Do not ro
intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Standard deviation
b. Calculate the average real return. (A negative answer should be indicated by a minus sign. Do not round intermediat
calculations. Enter your answer as a percent rounded to 2 decimal places)
Average real return
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