Assume inflation is 0.2% per month. Would you rather earn a nominal return of 0.77% per month,

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Assume inflation is 0.2% per month. Would you rather earn a nominal return of 0.77% per month, or a real return of 6.44% APR, compounded annually?

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Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Question Posted: Feb 27, 2024 03:07 AM

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Assume inflation is 0.2% per month. Would you rather earn a nominal return of 0.77% per month,

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To compare the two options lets break down the calculations Nominal return of 077 per month To calcu...View the full answer

Fundamentals Of Corporate Finance

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