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)%

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
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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)%
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)%
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