Question: 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

Problem 11-9 Real versus Nominal Returns (LO2) The Costaguanan stock market

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 81%. In the United States, in contrast, the stock market return was only 17%, but the inflation rate was only 3%. Calculate the real rate of return for both the Costaguana and the United States stock markets. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) rate of retu Costaguana United States % % Which country's stock market provided the higher real rate of return? O United States O Costaguana

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