The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Year Nominal Return (%) 2015 0.2 2016 -13.0 2017 -11.0 2018 -42.1 2019 2020 66.9 27.6 Inflation (%) 6.5 6.6 7.1 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. a. Standard deviation b. Average real return % %
The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Year Nominal Return (%) 2015 0.2 2016 -13.0 2017 -11.0 2018 -42.1 2019 2020 66.9 27.6 Inflation (%) 6.5 6.6 7.1 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. a. Standard deviation b. Average real return % %
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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Transcribed Image Text:The following table shows the nominal returns on Brazilian stocks and the rate of inflation.
Year
Nominal Return (%)
2015
2016
0.2
-13.0
2017
-11.0
2018
-42.1
2019
2020
66.9
27.6
Inflation (%)
6.5
6.6
7.1
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 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
%
%
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