Taren bought an investment one year ago and wanted to complete some calculations pertaining to the investment's

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Taren bought an investment one year ago and wanted to complete some calculations pertaining to the investment's return. The exact real return was 6.75% and inflation over the period was 4.28%.

What was the exact nominal return? What was the approximate nominal return? Why are the two values different?

Related Book For answer-question

Foundations of Financial Management

ISBN: 978-1259194078

15th edition

Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen

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Posted Date: Mar 29, 2023 02:43 AM

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Taren bought an investment one year ago and wanted to complete some calculations pertaining to the investment's

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ANSWER AND EXPLANATION The exact nominal return is 1103 This ... View the full answer

Foundations of Financial Management

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