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Jeremy Dixons portfolio earned 13.5% last year. Inflation for the year was 3.25%. Calculate his approximate real rate of return. What was the investor's actual

Jeremy Dixons portfolio earned 13.5% last year. Inflation for the year was 3.25%. Calculate his approximate real rate of return. What was the investor's actual real rate of return, using the Fisher equation?

I calculated the approximate real rate of return to be approximately 9.93%.

The Fisher Equation is: (1+R) = (1+r) * (1+h) where r is the % purchasing power has increased in the investment, and h = inflation over the period. If we are not given r, how do we figure out the actual real rate of return using the Fisher equation?

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