Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sarah earned a 8.1 percent nominal rate of return on her investments for the past year. During that time, the risk tree rate was 3.8

image text in transcribed
Sarah earned a 8.1 percent nominal rate of return on her investments for the past year. During that time, the risk tree rate was 3.8 percent and the inflation rate was 30 percent What was her real rate of return? 0.01951 X % Correct answers 4.95 Attempt #30/1 (Score 0/1) Allowed attempts 3 Incorrect (1 + real return) (onal (14 inflation) Real return (1:10.083) (140.00) 1 What was Sarah's risk premium? X 1.15 X % Attempt #1:0 (Score: 071) Allowed attempts: 3 Incorrect Check

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance Building Your Future

Authors: Robert Walker, Kristy Walker

2nd Edition

0077861728, 9780077861728

More Books

Students also viewed these Finance questions

Question

What are your research interests?

Answered: 1 week ago