Standard deviation of returns on real estate property

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• The price of a 10-year $100 par zero coupon inflation-indexed Treasury bond is $84.49.

• A real-estate property is expected to yield 2% per quarter with a standard deviation of the quarterly rate of 10%. You’re required to compute the continuously compounded annual risk premium on the real-estate investment. What is the annualized standard deviation of returns on the real estate property?

Reference no: EM131459956

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