Question
An investor earns a return of 6.90% per year on his investment into a portfolio of stocks in the energy sector. The inflation has
An investor earns a return of 6.90% per year on his investment into a portfolio of stocks in the energy sector. The inflation has has been 2.75% per year, and it is expected to stay at this level in the foreseeable future. Calculate the return that the investor's portfolio of stocks provides per year in real terms. % Using the exact formula, it should equal %. Put your answer in percent, NOT in decimals. Do NOT use "%" in your answer. Round to TWO decimal places. For example, if you got 12.34%, put 12.34. Using the approximate formula, it should equal %. Put your answer in percent, NOT in decimals. Do NOT use "%" in your answer. Round to TWO decimal places. For example, if you got 12.34%, put 12.34.
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Financial Reporting and Analysis
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon
6th edition
9780077632182, 78025672, 77632184, 978-0078025679
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