Large-cap stocks had the nominal rates of return of 13.10 percent. The rate of inflation during...

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Answer 1

Answer #1

Solution: The answer is 8.86%

Real Rate Of Return = [{(1 + Nominal Rate) / ( 1 + Inflation Rate)} - 1]

= [{(1 + 0.1310) / ( 1 + 0.0389)} - 1]

= 0.0886

= 8.86 %

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Answer 2

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