Calculate real rate of return for both Costaguana and US

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Reference no: EM131923804

The Costaguanan stock market provided a rate of return of 95%. The inflation rate in Costaguana during the year was 83%. In the United States, in contrast, the stock market return was only 14%, 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.)

Real rate of return

Costaguana %

United States %

Which country’s stock market provided the higher real rate of return?

United States

Costaguana

Reference no: EM131923804

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