The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Inflation (%) Year 2012 Nominal Return (%) 0.1 7.3 2013 -18.0 7.4 2014 -16.0 7.9 2015 2016 2017 -42.9 12.2 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.) 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. Inflation (%) Year 2012 Nominal Return (%) 0.1 7.3 2013 -18.0 7.4 2014 -16.0 7.9 2015 2016 2017 -42.9 12.2 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.) 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 %
Chapter13: Direct Foreign Investment
Section: Chapter Questions
Problem 1IEE
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Question
Transcribed Image Text:The following table shows the nominal returns on Brazilian stocks and the rate of inflation.
Inflation (%)
Year
2012
Nominal Return (%)
0.1
7.3
2013
-18.0
7.4
2014
-16.0
7.9
2015
2016
2017
-42.9
12.2
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.)
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
%
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