A stock had a return of 6.8 percent last year. If the inflation rate was 1.2 percent, what was the approximate real return? (Enter your answer as a percent rounded to 1 decimal place.)
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A stock had a return of 6.8 percent last year. If the inflation rate was 1.2 percent, what was the approximate real return? (Enter your answer as a percent rounded to 1 decimal place.)
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- Say you own an asset that had a total return last year of 17 percent. Assume the inflation rate last year was 4.8 percent. What was your real return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)What is the (exact) nominal return on an investment that earns a real return of 14.7% while inflation is 7.4%? Enter your response, in percent (%), correct to TWO decimal places.An investment offers a total return of 11 percent over the coming year. Alex Hamilton thinks the total real return on this investment will be only 7.4 percent. What does Alex believe the inflation rate will be over the next year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Inflation rate %
- Say you own an asset that had a total return last year of 11.5 percent. If the inflation rate last year was 6.5 percent, what was your real return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Real return % ( Prev 7 of 10 NextThe Costaguana stock market provided a rate of return of 93%. The inflation rate in Costaguana during the year was 80%. In Ruritania the stock market return was 13%, but the inflation rate was only 4%. a. Calculate the real rate of return for Costaguana stock market? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. b. Calculate the real rate of return for Ruritania stock market? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. c. Which country's stock market provided the higher real rate of return? a. Real rate of return for Costaguana stock market b. Real rate of return for Ruritania stock market c. Higher real rate of return % %Your investments increased in value by 16.3 percent last year, but your purchasing power increased by only 7.5 percent What was the approximate inflation rate? (Enter your answer as a percent rounded to 1 decimal place.)
- Compute the real rates of return for the following situations assuming that the inflation rate is 2 percent. Compute the real rates of return if the rate of inflation was 9 percent. Use a minus sign to enter negative values, if any. Do not round intermediate calculations. Round your answers to one decimal places. a. On February 1, you bought 90 shares of stock in the Francesca Corporation for $30 a share and a year later you sold it for $33 a share. During the year, you received a cash dividend of $1.70 a share. Real rate of return at 2%: % Real rate of return at 9%: b. On August 15, you purchased 100 shares of stock in the Cara Cotton Company at $41 a share and a year later you sold it for $35 a share. During the year, you eceived dividends of $3.00 a share. Real rate of return at 2%: % % Real rate of return at 9%: c. At the beginning of last year, you invested $4,950 in 90 shares of the Chang Corporation. During the year, Chang paid dividends of $3.00 per share. At the end of the…Inflation is a general increase in prices and may be measured by the Consumer Price Index (CPI). Use Appendix A to answer the questions. a. In Year 1 the CPI was 100; 30 years later, it was 239. What was the annual rate of inflation? Round your answer to the nearest whole number. %The Costaguana stock market provided a rate of return of 93%. The inflation rate in Costaguana during the year was 80%. In Ruritania the stock market return was 13%, but the inflation rate was only 4%. Calculate the real rate of return for Costaguana stock market? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Calculate the real rate of return for Ruritania stock market? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Which country's stock market provided the higher real rate of return?
- The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Year Nominal Return (%) Inflation (%) 7.5 2015 2016 0.5 -16.0 2017 -14.0 2018 -43.1 2019 67.9 2020 28.6 7.6 8.1 12.4 8.0 4.6 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 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 as a percent rounded to 2 decimal places. a. Standard deviation b. Average real return % %The yearly rates of return for a stock are 0 .15, -0.04, .05, -0.07, 0.24, 0.03. In the following your answers should be correct to 3 places after the decimal point. The Compound Rate of Return per annum compounded annually isSay you own an asset that had a total return last year of 10.4 percent. If the inflation rate last year was 4.3 percent, what was your real return?