Assume the inflation rate is 3% APR, compounded annually. Would you rather earn a nominal return of

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Assume the inflation rate is 3% APR, compounded annually. Would you rather earn a nominal return of 5% APR, compounded semiannually, or a real return of 2% APR, compounded quarterly?

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Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Question Posted: Jan 14, 2012 02:23 AM

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Assume the inflation rate is 3% APR, compounded annually. Would you rather earn a nominal return of

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