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A guy bought an investment one year ago and recently calculated his return on invest-ment. His exact nominal return was 11% and inflation over the

A guy bought an investment one year ago and recently calculated his return on invest-ment.

His exact nominal return was 11% and inflation over the period was 4%. What was the exact real return? What was the approximate real return? Does this matter? What benefit is there in calculating either of these values?

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