The following table shows the nominal returns on Costaguanan stocks and the rate

Question

The following table shows the nominal returns on Costaguanan stocks and the rate of inflation. a. What was the standard deviation of the market returns? (Note: Use the method for calculating variance and standard deviation described n Section 7-2 of the text.) (Do not round intermediate calculations. Round your answer to 1 decimal place.) Standard deviation [ ] % b. Calculate the average real return. (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to I decimal place.) Average real return [ ] %

Explanation / Answer

Year Normal Return Inflation Real Return 2004 11.40% 2.20% 9.20% 2005 7.70% 3.40% 4.30% 2006 15.90% 3.00% 12.90% 2007 3.70% 5.50% -1.80% 2008 -43.30% 0.50% -43.80% Market Standard Deviation= 24.12% Average Real return= -3.84%

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.