The following table shows the nominal returns on Brazilian stocks and the rat Year Nominal Return (§) Inflation (3) 2012 6.7 2013 6.8 2014 7.3 2015 11.6 2016 7.2 2017 3.8 0.4 -18.0 -16.0 -42.3 67.1 27.8
The following table shows the nominal returns on Brazilian stocks and the rat Year Nominal Return (§) Inflation (3) 2012 6.7 2013 6.8 2014 7.3 2015 11.6 2016 7.2 2017 3.8 0.4 -18.0 -16.0 -42.3 67.1 27.8
Chapter13: Direct Foreign Investment
Section: Chapter Questions
Problem 1IEE
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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 ()
2012
2013
2014
2015
2016
2017
0.4
-18.0
-16.0
-42.3
67.1
27.8
Standard deviation
Inflation (3)
6.7
6.8
7.3
11.6
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.)
7.2
3.8
Average real return
%
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)
%
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