The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Year Nominal Return (%) 2012 0.1 -15.0 -13.0 2013 2014 2015 2016 2017 -43.4 68.2 28.9 Standard deviation 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.) Inflation (%) 7.8 7.9 8.4 12.7 8.3 4.9 Averano 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) %

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter13: Direct Foreign Investment
Section: Chapter Questions
Problem 1IEE
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The following table shows the nominal returns on Brazilian stocks and the rate of inflation.
Year Nominal Return (%)
2012
0.1
-15.0
-13.0
2013
2014
2015
2016
2017
-43.4
68.2
28.9
Standard deviation
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.)
Inflation (%)
7.8
7.9
8.4
12.7
8.3
4.9
Averano 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 0.1 -15.0 -13.0 2013 2014 2015 2016 2017 -43.4 68.2 28.9 Standard deviation 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.) Inflation (%) 7.8 7.9 8.4 12.7 8.3 4.9 Averano 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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