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You are assessing the returns of a portfolio. You find that over the last year, returns and inflation were as follows: Return Inflation Year 1:
You are assessing the returns of a portfolio. You find that over the last year, returns and inflation were as follows: Return Inflation Year 1: 10.6% 10.2% Year 2: 4.5% 4.1% Year 3: 3.9% 3.5% Which year had the highest real return (according to the proper Fisher equation)? A. Year 1 B. Year 2 C. Year 3 D. They all have the same real return
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