Assignment Help - homework help

Standard deviation of the market returns


Problem: The following table shows the nominal returns on U. S. stocks and the rate of inflation.

Q1. What was the standard deviation of the market returns?

Q2. Calculate the average real return.

Year Nominal Return (%) Inflation (%)

2004 12.5      3.3
2005 6.4       3.4
2006 15.8     2.5
2007 5.6       4.1
2008 -37.2    0.1

Solution Preview :

Prepared by a verified Expert
Finance Basics: Standard deviation of the market returns
Reference No:- TGS01826197

Now Priced at $25 (50% Discount)

Recommended (95%)

Rated (4.7/5)