Standard deviation of the market returns

Assignment Help Finance Basics
Reference no: EM133073069

The following table shows the nominal returns on Brazilian stocks and the rate of inflation. 

Year

Nominal Return (%)

Inflation (%)

2012

0.2

6.4

2013

-18.0

6.5

2014

-16.0

7.0

2015

-42.0

11.3

2016

66.8         

6.9

2017

27.5

3.5

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)

Reference no: EM133073069

Questions Cloud

Case-shelley-portion of cellzyme : Shelley alternately considers an equity carve-out of a portion of Cellzyme. Assume Interco initially owns 20M Cellzyme shares. She is advised by her investment
Securing iot devices-what are the challenges : Securing IoT Devices: What are the Challenges? how to make people more aware of the problems associated with the use of IoT devices.
Calculate the minimum variance hedge ratio : Q1) A trader owns 55,000 units of a commodity with current market price is $28/unit and the standard deviation of this spot price of is $.43. Use a cross hedge
What is the project npv : Project L requires an initial outlay at t = 0 of $40,000, its expected cash inflows are $10,000 per year for 9 years, What is the project NPV
Standard deviation of the market returns : The following table shows the nominal returns on Brazilian stocks and the rate of inflation.
Calculate the share capital and retained earnings balances : A company has the following transactions over its 4-year history: Calculate the Share Capital and Retained Earnings balances at the end of each year
Portfolio project : You will also need to propose relevant metrics that should be collected to ensure that the information governance program is effective.
What would be the cost of new equity : Question - Banyan Co.'s common stock currently sells for $30.75 per share. What would be the cost of new equity
Explain the impact of a decline in interest rates : 1. How Interest Rates Affect Bond Prices. Explain the impact of a decline in interest rates on:

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd