Calculate expected nominal rate of return

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Reference no: EM132506332

Your parents have asked you to re-estimate (again) the expected returns on their portfolio. Your new numbers are

Expected returns for 2020
Equity -6%
Bonds +3%
Cash +1.5

Your portfolio allocation is

Equity 60%
Bonds 30%
Cash 10%

Calculate your expected nominal rate of return

Given an inflation rate of 2%, what is your expected real rate of return

Reference no: EM132506332

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