Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

What nominal return was received by an investor when inflation averaged 8.0% and the real rate of return was a negative 2.5%? I know that

What nominal return was received by an investor when inflation averaged 8.0% and the real rate of return was a negative 2.5%?

I know that the answer is 5.36% but I'm getting 5.5%.

Please explain step by step.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions