Say you own an asset that had a total return last year of 14 percent. If...

Say you own an asset that had a total return last year of 14 percent. If the inflation rate last year was 5.5 percent, what was your real return?

Multiple Choice

7.96%
8.16%
8.26%
-7.46%
8.06%

Expert Solution

(1 + Nominal rate of return) = (1 + Real rate of return)(1 + Inflation rate)

(1 + 0.14) = (1 + Real rate of return)(1 + 0.055)

Real rate of return = [(1 + 0.14) / (1 + 0.055)] - 1

Real rate of return = 0.0806 or 8.06%

jeff jeffy answered 2 years ago

Say you own an asset that had a total return last year of 10.3 percent. If...

Say you own an asset that had a total return last year of 10.3 percent. If the inflation rate last year was 4.1 percent, what was your real return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Say you own an asset that had a total return last year of 16 percent. If...

Say you own an asset that had a total return last year of 16 percent. If the inflation rate last year was 5.5 percent, what was your real return? Multiple Choice • 9.85% • 9.95% • -9.05% • 10.05% • 10.15%

Say you own an asset that had a total return last year of 10.7 percent. If...

Say you own an asset that had a total return last year of 10.7 percent. If the inflation rate last year was 4.9 percent, what was your real return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Real return %

Say you own an asset that had a total return last year of 17.5 percent. If...

Say you own an asset that had a total return last year of 17.5 percent. If the inflation rate last year was 6 percent, what was your real return?

Say you own an asset that had a total return last year of 16 percent. Assume...

Say you own an asset that had a total return last year of 16 percent. Assume the inflation rate last year was 3.8 percent. What was your real return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Real return = _______ %

Say you own an asset that had a total return last year of 18.5percent. If...

Say you own an asset that had a total return last year of 18.5 percent. If the inflation rate last year was 3 percent, what was your real return?

You find a certain stock that had returns of 14 percent, -27 percent, 19 percent, and...

You find a certain stock that had returns of 14 percent, -27 percent, 19 percent, and 21 percent for four of the last five years, respectively. What is the average return of the stock over this period? What is the standard deviation of the stock's returns?

You have been given the following return data: Expected Return Year Asset A Asset...

You have been given the following return data: Expected Return Year Asset A Asset B Asset C 2021 7% 8% 2% 2022 9% 6% 4% 2023 11% 4% 6% 2024 13% 2% 8% on three assets-A, B, and C over the period 2021--2024 Using these assets, you have isolated three investment alternatives: Alternative Investment 1 100% of asset A 2 50% of asset...

You have been given the following return data, Expected Return Year Asset F Asset G Asset...

You have been given the following return data, Expected Return Year Asset F Asset G Asset H 2018 17% 16% 13% 2019 18% 15% 14% 2020 19% 14% 15% 2021 20% 13% 16% Alternative Investment 1 100% of asset F 2 55% of asset F and 45% of asset G 3 55% of asset F and 45% of asset H F, G, and H over the period 2018 2021. Using these assets, you have isolated three investment alternatives: a. Calculate...

You own a stock with an average return of 18.7 percent and a standard deviation of...

You own a stock with an average return of 18.7 percent and a standard deviation of 19.6 percent. In any one given year, you have a 95 percent chance that you will not lose more than ________ percent nor earn more than ________ percent on this stock. A) 57.9; 20.5 B) 20.5; 38.3 C) 20.5; 57.9 D) 0.9; 57.9 E) 0.9; 38.3

Question