Question
1. Use the data from finance-yahoo.com to answer the following questions about ADOBE stock Calculate the real rate of return. To do this, you need
1. Use the data from finance-yahoo.com to answer the following questions about ADOBE stock
Calculate the real rate of return. To do this, you need to know the nominal return on your investment and the rate of inflation during the corresponding period.
c.) Use the St. Louis Federal Reserves website at research.stlouisfed.org/fred2 as a source for data about the expected inflation. Download the historical consumer price index for the corresponding period with the Adobe stock price.
Calculate the percentage change in the consumer price index to obtain the rate of inflation.
Determine the each month real return of Adobe stock but subtracting inflation rate from the nominal return.
Determine the average real return on Adobe stock over the period of the last 24-month.
What is the difference between average nominal and real return on Adobe stock?
please help :)
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