Question
The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Year...
The following table shows the nominal returns on Brazilian stocks and the rate of inflation.
| Year | Nominal Return (%) | Inflation (%) |
| 2012 | 0.2 | 7.0 |
| 2013 | -18.0 | 7.1 |
| 2014 | -16.0 | 7.6 |
| 2015 | -42.6 | 11.9 |
| 2016 | 67.4 | 7.5 |
| 2017 | 28.1 | 4.1 |
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.)
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)
Homework Answers
Answer #1
A) Std Dev=
35.75%
B) Average Real Return=-3.61%
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