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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 Stabilatos securities? From investing in Variatos securities? Stabilato Asset Average Return Standard Deviation Stocks 8% 3% Bonds 5% 2% Short-Term Govt Debt 3% 1% Variato Asset Average Return Standard Deviation Stocks 15% 13% Bonds 10% 8% Short-Term Govt Debt 6% 3%
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