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Assume that during the past year the consumer price index increased by 4 percent and the securities listed below returned the following real rates of
Assume that during the past year the consumer price index increased by 4 percent and the securities listed below returned the following real rates of return. a. What are the nominal rates of return for each of these securities? b. If next year the nominal rates all rise by 10 percent (i.e. multiply by 1.1, do NOT add 0.10) while inflation climbs from 4 percent to 5 percent, what will be the real rate of return on each security
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