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. Wh

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 = _______ %

Expert Solution

The Fisher equation, which shows the exact relationship between nominal interest rates, real interest rates, and inflation, is:

(1 + R) = (1 + r)(1 + h)

r = [(1 + 0.16) / (1 + 0.038)] – 1

r = 0.1175, or 11.75%

ekkarill92 answered 2 years ago

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 10.3 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 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 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%

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 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?

4. You own a Portfolio that is invested 43 percent in Stock A, 16 percent in...

4. You own a Portfolio that is invested 43 percent in Stock A, 16 percent in Stock B, and 41 percent in Stock C. The “Expected Returns” on Stocks A, B, and C are: 9.1 percent, 16.7 percent, and 11.4 percent, respectively. What is the “Variance” of the Portfolio and What is the “Standard Deviation” of the Returns on this Stock?

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

The Wall Street Journal provides the net asset value, the year-to-date percent return, and the three-year...

The Wall Street Journal provides the net asset value, the year-to-date percent return, and the three-year percent return for 748 mutual funds.† Assume that a simple random sample of 12 of the 748 mutual funds will be selected for a follow-up study on the size and performance of mutual funds. Use the first column of the table of random numbers, beginning with 63271, to select the simple random sample of 12 mutual funds. Begin with mutual fund 271 and use...

Question