If investors require a 12% nominal return and the expected inflation rate is 4%, what is...

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If investors require a 12% nominal return and the expected inflation rate is 4%, what is the expected real return? Select one

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Answer 1

Answer #1

Expected Real Return ((1+Nominal Return)/(1+Inflation return))-1 ((1+0.12)/(1+0.04))-1 0.0769 7.69% Answer:a

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26. Assume that US, and British investors require a real return of 2%. If the nominal...

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Add Answer to: If investors require a 12% nominal return and the expected inflation rate is 4%, what is...

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