The return for the S&P 500 in 2014 was about 13.5 percent. The rate of inflation was
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The return for the S&P 500 in 2014 was about 13.5 percent. The rate of inflation was about 1.5 percent. Therefore, the real (inflation‐adjusted) return for large U.S. common stocks in 2014 was (1.135/1.015) − 1 = 0.118 or 11.8%.
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Thats absolutely correct Your explanation and calculation accurately capture the real inflationad...View the full answer
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Related Book For 
Investments Analysis And Management
ISBN: 9781118975589
13th Edition
Authors: Charles P. Jones, Gerald R. Jensen
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