Question
I would appreciate a better explanation on how to get the answer with these 2 questions. I have been back and forth through the book
I would appreciate a better explanation on how to get the answer with these 2 questions. I have been back and forth through the book and it has been very confusing. Thanks for the help
Chapter 12
P6 -Find the real return on the following investments:
Stock | Nominal Return | Inflation |
|
A | 10% | 3% |
|
B | 15% | 8% |
|
C | -5% | 2% |
|
P8: The countries of Stabilato and Variato have the following average returns and standard deviations for their stocks, bond, and short-term government securities. What range of returns should you expect to earn 95 percent of the time for each asset class if you invested in Stabilato
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