Calculating real rate using nominal rate and inflation rate

Reference no: EM1310565

Q1) Compute expected returns of the portfolio

Stock Invest Exp Ret
A $427 8%
B $633 14.5%
C $1,595 25.2%

Q2) Assume returns for Stock A for last 6 years were 4%, 7%, 8%, -2%, 9%, and 7%. Calculate standard deviation of the returns.

Q3) Assume nominal rate is 14.62% and inflation rate is 5.49%. Solve for the real rate.

Reference no: EM1310565

Questions Cloud

Morphine and codeine : Both morphine and codeine are analgesics, which mean that, they:

Data mining-data base and data warehousing : Data mining tools and models help you address? Explain each of tasks and how data mining tools and models address each. How does the data mining relate/contrast to data base and data warehousing? Whether these different or the same approaches. exp..

Specific identification inventory valuation method : Judy's Cars, Inc. sells collectible automobiles to consumers. Judy employs the specific identification inventory valuation method.

Personal growth and success : Planning for further personal growth and success as leaders in our fields by focusing on short-term and long-term goals and plans

Calculating real rate using nominal rate and inflation rate : Assume nominal rate is 14.62% and inflation rate is 5.49%. Solve for the real rate.

Describe the each project''s payback period : Describe the each project's payback period and Describe the each project's net present value

Effect on the contribution margin per unit : Effect on the contribution margin per unit and the contribution margin ratio and calculation used in a CVP analysis is the breakeven point.

Federal rules and criminal codes : Think about computer forensics professional’s testimony preparations, and how the investigator must ensure that the federal rules and criminal codes are followed both during and after the completion of the investigation. Identify and discuss some ..

Purpose of advertising and promotion : Present arguments as to why communications objectives must also be considered.

User Account

All Pages