Question: Problem 1 1 - 9 Real versus Nominal Returns ( LO 2 ) The Costaguanan stock market provided a rate of return of 9 5

Problem 11-9 Real versus Nominal Returns (LO2)
The Costaguanan stock market provided a rate of return of 95%. The inflation rate in Costaguana during the year was 80%. In Ruritania, in contrast, the stock market return was only 12%, but the inflation rate was only 2%.
Calculate the real rate of return for both the Costaguana and the Ruritania stock markets.
Which countrys stock market provided the higher real rate of return?

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