The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Year Nominal Return (%) Inflation (%) 2012 0.3 6.3 2013 -16.0 6.4 2014 -14.0 6.9 2015 -41.9 11.2 2016 66.7 6.8 2017 27.4 3.4 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.) 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)
The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Year Nominal Return (%) Inflation (%) 2012 0.3 6.3 2013 -16.0 6.4 2014 -14.0 6.9 2015 -41.9 11.2 2016 66.7 6.8 2017 27.4 3.4 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.) 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)
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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The following table shows the nominal returns on Brazilian stocks and the rate of inflation.
| Year | Nominal Return (%) | Inflation (%) |
| 2012 | 0.3 | 6.3 |
| 2013 | -16.0 | 6.4 |
| 2014 | -14.0 | 6.9 |
| 2015 | -41.9 | 11.2 |
| 2016 | 66.7 | 6.8 |
| 2017 | 27.4 | 3.4 |
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.)
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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