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Show your work, please The shareholders of a business expect an annual rate of return of 15% given the risk profile of the company. If
Show your work, please
The shareholders of a business expect an annual rate of return of 15% given the risk profile of the company. If inflation is 2% a year and this return is realized, what is the real rate of return on this investment? What if inflation is 10% annually? Explain the concept of purchasing power and how it relates to inflation.
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