Calculate the real annual rates of return for oracle

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Compare the nominal and real annual returns for Oracle Corp. (ticker: ORCL). Determine the annual nominal rate of return for Oracle over the last ten years. Use the CPI inflation calculator at the Bureau of Labor Statistics Web site (https://data.bls.gov/cgi-bin/cpicalc.pl) to determine annual inflation rates over the last ten years.

Calculate the real annual rates of return for Oracle. Is the real rate of return less than the nominal rate of return every year? Why?

What do you think will happen to this relationship if the inflation in any given year were negative?

Reference no: EM131329028

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