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The Costaguanan stock market provided a rate of return of 96%. The inflation rate in Costaguana during the year was 84%. In Ruritania, in contrast,
The Costaguanan stock market provided a rate of return of 96%. The inflation rate in Costaguana during the year was 84%. In Ruritania, in contrast, the stock market return was only 16%, but the inflation rate was only 3%.
Calculate the real rate of return for both the Costaguana and the Ruritania stock markets.
Which countrys stock market provided the higher real rate of return?
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