If an investment has a nominal return of 3.8% per year, while the inflation is expected...

 

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If an investment has a nominal return of 3.8% per year, while the inflation is expected to be 3.6% per year, what would be its real return? What if the inflation is 4.2%? If an investment has a nominal return of 3.8% per year, while the inflation is expected to be 3.6% per year, what would be its real return? What if the inflation is 4.2%?

Answer rating: 100% (QA)

To calculate the real return we subtract the inflation rate from the nominal return 1 When the in... View the full answer