Question: ONLY B AND C NEEDED TO BE SOLVED~!! Problem 7-2 Real versus nominal returns The Costaguanan stock market provided a rate of return of 95%

ONLY B AND C NEEDED TO BE SOLVED~!! Problem 7-2 Real

ONLY B AND C NEEDED TO BE SOLVED~!!

Problem 7-2 Real versus nominal returns The Costaguanan stock market provided a rate of return of 95% The Inflation rate in Costaguana during the year was 80%. In Ruritania the stock market retum was 15%, but the Inflation rate was only 2%. a. Calculate the real rate of return for Costaguanan stock market? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Real rate of return for Costaguanan stock market 8.33% b. Calculate the real rate of return for Ruritania stock market? (Do not round Intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Real rate of return for Ruritania stock market c. Which country's stock market provided the higher real rate of return? Higher real rate of return

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