In-line exercise: real returns
If inflation is running at 1%/month, what are the real rates of return to Ursidae Corp for the three months examined in the previous in-class exercise? Recall that the nominal returns were 10%, -20%, and 5%.
Phil Dybvig
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I invite you to work on this in-line exercise. Press the small right triangle to see the solution. Even if you do not finish, I suggest working on the problem before looking at the answer. Then the answer will mean more to you because you will see where you got stuck. |