2. Over the last nine years, you have earned the following returns on theNZXYear(ending in March)2013-201417.45%2014-2015 15.17%2015-2016 17.26%2016-2017 7.94%2017-2018 16.92%2018-2019 19.54%0.36%2019-20202020-2021 28.93%2021-2022-5.17%ReturnYou have also collected the level of the CPI over the same period:DateMarch 2013March 2014March 2015March 2016March 2017March 2018March 2019March 2020March 2021March 2022Level958972975979100010111026105210681142(a) For each tax year, calculate the inflation rate.(b) Now calculate a real rate of return for the NZX50 (use the full for-mula, not the approximation) for each year.(c) What is the mean nominal return for the NZX50? What is the meanreal return?(d) What is the nominal volatility for the NZX50? What is the realvolatility of the NZX50?(e) Suppose New Zealand had a 33% tax levied on capital gains and alldividends. Repeat your analysis, calculating after-tax mean real andnominal returns, along with real and nominal after-tax volatilities.

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Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 77E: Ratio Analysis The following information was taken from Logsden Manufacturings trial balances as of...

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