The following table shows the nominal returns on Brazilian stocks and the rate of inflation. 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.) Answer is complete but not entirely correct. 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) Answer is complete but not entirely correct. The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Year Nominal Return (%) Inflation (%) 2012 0.1 7.3 2013 -18.0 7.4 2014 -16.0 7.9 2015 -42.9 12.2 2016 2017 67.7 28.4 7.8 4.4 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.) Answer is complete but not entirely correct. Standard deviation 26.70% 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) Answer is complete but not entirely correct. Average real return (3.67) %
The following table shows the nominal returns on Brazilian stocks and the rate of inflation. 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.) Answer is complete but not entirely correct. 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) Answer is complete but not entirely correct. The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Year Nominal Return (%) Inflation (%) 2012 0.1 7.3 2013 -18.0 7.4 2014 -16.0 7.9 2015 -42.9 12.2 2016 2017 67.7 28.4 7.8 4.4 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.) Answer is complete but not entirely correct. Standard deviation 26.70% 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) Answer is complete but not entirely correct. Average real return (3.67) %
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:The following table shows the nominal returns on
Brazilian stocks and the rate of inflation. 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.) Answer is
complete but not entirely correct. 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) Answer is complete but not entirely
correct.
The following table shows the nominal returns on Brazilian stocks and the rate of inflation.
Year
Nominal Return (%)
Inflation (%)
2012
0.1
7.3
2013
-18.0
7.4
2014
-16.0
7.9
2015
-42.9
12.2
2016
2017
67.7
28.4
7.8
4.4
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.)
Answer is complete but not entirely correct.
Standard deviation
26.70%
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)
Answer is complete but not entirely correct.
Average real return
(3.67) %
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 4 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education