Question
In: Finance
The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Year...
The following table shows the nominal returns on Brazilian stocks and the rate of inflation.
Year Nominal Return (%) Inflation (%)
2012 0.5 6.8
2013 -14.0 6.9
2014 -12.0 7.4
2015 -42.4 11.7
2016 67.2 7.3
2017 27.9 3.9
a. What was the standard deviation of the market returns?
b. Calculate the average real return.
Solutions
jeff jeffy answered 4 months agoRelated Solutions
The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Year...
The following table shows the nominal returns on Brazilian
stocks and the rate of inflation.
Year
Nominal Return (%)
Inflation (%)
2012
0.4
7.4
2013
-17.0
7.5
2014
-15.0
8.0
2015
-43.0
12.3
2016
67.8
7.9
2017
28.5
4.5
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...
The following table shows the nominal returns on Brazilian stocks and the rate of inflation. Year...
The following table
shows the nominal returns on Brazilian stocks and the rate of
inflation.
Year
Nominal Return
(%)
Inflation
(%)
2012
0.2
6.9
2013
-16.0
7.0
2014
-14.0
7.5
2015
-42.5
11.8
2016
67.3
7.4
2017
28.0
4.0
a.
What was the standard deviation of the market returns?
b. Calculate the
average real return
The following table shows the nominal returns on U.S. stocks and the rate of inflation. Year...
The following table shows the nominal returns on U.S. stocks and
the rate of inflation. Year Nominal Return (%) Inflation (%) 2010
13.6 3.7 2011 8.6 2.8 2012 16.0 3.3 2013 4.1 4.4 2014 −40.2 .4 a.
What was the standard deviation of the nominal market returns? (Do
not make the adjustment for degrees of freedom described in
footnote 18.) (Use decimals, not percents, in your calculations. Do
not round intermediate calculations. Enter your answer as a percent
rounded to...
The following table shows the nominal returns on U.S. stocks and the rate of inflation. Year...
The following table shows the nominal returns on U.S. stocks and
the rate of inflation.
Year
Nominal Return (%)
Inflation (%)
2010
11.7
2.2
2011
8.6
3.4
2012
15.5
2.9
2013
5.7
4.3
2014
−44.2
.3
a. What was the standard deviation of the
nominal market returns? (Do not make the adjustment for degrees of
freedom described in footnote 18.) (Use decimals, not
percents, in your calculations. Do not round intermediate
calculations. Enter your answer as a percent rounded to...
51. The relationship between nominal returns, real returns, and inflation is referred to as the: A....
51. The relationship between nominal returns, real returns, and
inflation is referred to as the:
A. call premium.
B. Fisher effect.
C. conversion ratio.
D. spread.
E. current yield.
52. Which of the following bonds would have the greatest percentage
decrease in value if all interest rates in the
economy rise by 1%?
A. 10-year, zero coupon bond;
B. 30-year, zero coupon bond;
C. 20-year, 10% coupon bond;
D. 10-year, 10% coupon bond;
E. 20-year, 5% coupon bond;
53. If...
. ________ tells us the relationship between nominal returns, real returns and inflation. A. the Fisher...
. ________ tells us the relationship between nominal returns,
real returns and inflation.
A. the Fisher Effect
B. Efficient Market Hypothesis
C. Fisher's separation theorem
D. both the Fisher Effect and Fisher's separation theorem
True or False Returns adjusted for the effects of inflation are known as nominal returns. ANSWER:...
True or False
Returns adjusted for the effects of inflation are known as
nominal returns.
ANSWER: ________
Your real return on an investment is the percentage change in
the number of dollars you have.
ANSWER: ________
The following table shows the annual returns over a six year period for the S&P 500...
The following table shows the annual
returns over a six year period for the S&P 500 market index and
MCH, Inc. Assume that the historical information represents a
population. Use this data to calculate the correlation between both
sets of security returns. Discuss your findings.
Year
S&P
500
MCH,
Inc.
2013
0.15
0.37
2014
0.13
0.09
2015
0.14
-0.11
2016
-0.09
0.08
2017
0.12
0.11
2018
0.09
0.04
Please show me each step. Thank you
The following table shows the annual returns over a six year period for the S&P 500...
The following table shows the annual
returns over a six year period for the S&P 500 market index and
MCH, Inc. Assume that the historical information represents a
population. Use this data to calculate the correlation between both
sets of security returns. Discuss your findings.
Year
S&P
500
MCH,
Inc.
2013
0.15
0.37
2014
0.13
0.09
2015
0.14
-0.11
2016
-0.09
0.08
2017
0.12
0.11
2018
0.09
0.04
1) In a given year the nominal growth rate is 7% with inflation and population growth...
1) In a given year the nominal growth rate is 7% with inflation
and population growth rates of 2% and 1.2% respectively, then real
growth rate of GDP per capita is:
A. 3.8%.
B. 5.0 %.
C. 5.8%.
D. 7.0 %.
2) You purchase a bag of chocolate chips for $3, a bag of flour
for $1, a bag of sugar for $.50, a half dozen eggs for $.50, and a
half pound of butter for $2. You use all...
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