The following table shows the nominal returns on Costaguanan stocks and the rate of inflation.

Year Nominal Return (%) Inflation (%)

2004 +12.0 +2.4

2005 +7.8 +3.2

2006 +17.2 +4.0

2007 +7.7 +4.3

2008 43.5 +0.2

a. What was the standard deviation of the market returns? (Note: Use the method for calculating variance and standard deviation described in Section 7-2 of the text.) (Do not round intermediate calculations. Round your answer to 1 decimal place.)

Standard deviation %=

b. Calculate the average real return. (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 1 decimal place.)

Average real return %=