2. Real versus nominal returns (S7.1) The Costaguana stock market provided a return of 95%. The inflation
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2. Real versus nominal returns (S7.1) The Costaguana stock market provided a return of 95%.
The inflation rate in Costaguana during the year was 80%. In Ruritania the stock market return was 12%, but the inflation rate was only 2%. Which country’s stock market provided the higher real rate of return?
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Related Book For
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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