The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Year...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Year Nominal Return (%) 2012 2013 0.2 -16.0 Inflation (%) 6.9 7.0 2014 -14.0 7.5 2015 -42.5 11.8 2016 2017 67.3 28.0 7.4 4.0 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.) Standard deviation % 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) Average real return % The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Year Nominal Return (%) 2012 2013 0.2 -16.0 Inflation (%) 6.9 7.0 2014 -14.0 7.5 2015 -42.5 11.8 2016 2017 67.3 28.0 7.4 4.0 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.) Standard deviation % 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) Average real return %
Expert Answer:
Answer rating: 100% (QA)
To calculate the standard deviation of the market returns and the average real return we will use th... View the full answer
Related Book For
Principles Of Corporate Finance
ISBN: 9781265074159
14th International Edition
Authors: Richard Brealey
Posted Date:
Students also viewed these finance questions
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
ABC Company has the following mutually exclusive projects. If the company's payback period is 2 years, which of these projects should be chosen? Project A Year 0 -19,500 1 11,500 2 8,750 3 2,500...
-
Use the method of separation of variables to find the product solution of the PDES: (a) u + Uy=3u (b) xu = 2yuy
-
You are a research fellow for a Washington, D.C.-based research institute investigating the ethics of restrictions on the international movement of labor. In the practice of international trade, both...
-
The product of two consecutive odd integers, the first of which is 2n - 1 Write an algebraic expression for the verbal description.
-
Although the customer loyalty project at Petrie Electronics had gone slowly at first, the past few weeks had been fast-paced and busy, Jim Watanabe, the project manager, thought to himself. He had...
-
Stellar Inc. is a construction company specializing in custom patios. The patios are constructed of concrete, brick, fiberglass, and lumber, depending upon customer preference. On June 1, 2012, the...
-
Explain the ways in which the firms and industries that led cities' recoveries from de-industrialization are similar and different from the firms and industries that led the industrial revolution....
-
Provide the following for the following challenge exercise: a) Income Statement, Gross Margin Standard, year-to-date b) All Journal Entries c) Customer Aged Detail, all customers, with terms at Mar...
-
7. Bernie Larson is the manager of a New York style delicatessen. Bernie's boss has established performance targets that determine the amount of bonus Bernie will receive each month. Bemie's...
-
A free electron has an initial potential energy per unit charge ( voltage ) of 1 7 kJ / C and a velocity of 9 3 Mm / s . Later, its potential energy per unit charge is 6 kJ / C . Determine the change...
-
The motion diagram below shows the positions of two people walking across the South Oval. The positions are given at equally spaced times to, t, t2, etc. These times are the same for each person, of...
-
A flow field which has only convective acceleration is A a steady uniform flow B an unsteady uniform flow C a steady non - uniform flow D an unsteady non - uniform flow
-
Suppose you are doing research for a battery company and you are trying to select an electrolyte for use in your experiments with electrochemical cells. In making your decision between NaCl and RbF,...
-
Two AET students are discussing horsepower, torque, and vehicle speed. Student A says that hp = ( torque x rpm ) - : 2 5 2 5 . Student B says it will take 6 5 0 hp to go 2 0 0 mph in a vehicle that...
-
Check that the equation below is not exact but becomes exact when multiplied by the integrating factor. xy + x(1+ y)y = 0 Integrating factor: u(x, y) = 1/(y). Solve the differential equation. You can...
-
Find i 0 (t) for t > 0 in the circuit in Fig. 16.72 . 2 + Vo 1 7.5e-2t u(t) V ( +) 4.5[1 u(t)]V 0.5v. 1H
-
Name two advantages of having shareholder value as the only goal of a corporation.
-
Why is enlightened shareholder value referred to as enlightened?
-
How did the Business Roundtable change its Statement on the Purpose of a Corporation in 2019?
-
Wagons and Wheels Ltd is a farm machinery dealership. In recent years, the company has experienced unsatisfactory profit results because of declining sales in the area. At the suggestion of the...
-
Quick Brekkie Ltd is evaluating three comparable investments. Summary data for the three investments, each of which would be paid for in current dollars, are listed below. Required Rank the three...
-
Phone Screens and Computer Screens are two divisions operated as investment centres of Siciliano Ltd. Management wants to know which of the two earned the highest return on investment for the year...
Study smarter with the SolutionInn App