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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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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