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John wants to compute the inflation rate implied by Stock A's returns over the prior year. During this period, Stock A provided a nominal and
John wants to compute the inflation rate implied by Stock A's returns over the prior year. During this period, Stock A provided a nominal and real rate of return of 14.84% and 6.65%, respectively. (John knows the rough approximation of the inflation rate is 8.19%, but would like a more precise estimate.)
A. | 8.89% | |
B. | 7.68% | |
C. | 8.03% | |
D. | 9.12% |
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