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You are considering investing in a particular stock next year. You have obtained the actual returns for this stock for the past 5 years and
You are considering investing in a particular stock next year. You have obtained the actual returns for this stock for the past 5 years and have calculated the following statistics: Average Return (Mean) - 12.8%; Variance - .0305; Standard Deviation - 17.47%. All #s are positive #s. During these last 5 years, the average inflation rate was 3.5% What was the average real return for this stock?
A) Between 9.5% - 10.5%
B) Between 8.5% - 9.5%
C) Between 7.5% - 8.5%
D) Between 6.5% - 7.5%
E) Between 5.5% - 6.5%
F) Between 4.5% - 5.5%
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