The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Year Nominal Return (8) 2015 0.2 -13.0 -11.0 -42.1 66.9 27.6 2016 2017 2018 2019 2020 Inflation () 6.5 6.6 7.1 11.4 a. Standard deviation b. Average real return 7.0 3.6 a. What was the standard deviation of the market returns? Note: Use decimals, not percents, in your calculations. Do not round intermediate calculations. Enter your answer a percent rounded to 2 decimal places. b. Calculate the average real return. Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer a percent rounded to 2 decimal places. 34.55 % %

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
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Nikul 

The following table shows the nominal returns on Brazilian stocks and the rate of inflation.
Year Nominal Return (8)
2015
0.2
2016
-13.0
2017
-11.0
-42.1
2018
2019
2020
66.9
27.6
Inflation (8)
6.5
6.6
7.1
a. Standard deviation
b. Average real return
11.4.
7.0
3.6
a. What was the standard deviation of the market returns?
Note: Use decimals, not percents, in your calculations. Do not round intermediate calculations. Enter your answer as
percent rounded to 2 decimal places.
b. Calculate the average real return.
Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer
a percent rounded to 2 decimal places.
34.55%
%
Transcribed Image Text:The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Year Nominal Return (8) 2015 0.2 2016 -13.0 2017 -11.0 -42.1 2018 2019 2020 66.9 27.6 Inflation (8) 6.5 6.6 7.1 a. Standard deviation b. Average real return 11.4. 7.0 3.6 a. What was the standard deviation of the market returns? Note: Use decimals, not percents, in your calculations. Do not round intermediate calculations. Enter your answer as percent rounded to 2 decimal places. b. Calculate the average real return. Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer a percent rounded to 2 decimal places. 34.55% %
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