Solution-Real rate of return for costaguanan stock

Real rate of return for costaguanan stock

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Reference no: EM132648564

The Costaguanan stock market provided a rate of return of 95%. The inflation rate in Costaguana during the year was 80%. In Ruritania the stock market return was 12%, but the inflation rate was only 2%.

a. Calculate the real rate of return for Costaguanan stock market? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

b. Calculate the real rate of return for Ruritania stock market? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

c. Which country's stock market provided the higher real rate of return?

Reference no: EM132648564

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Real rate of return for costaguanan stock

Reference no: EM132648564

Reference no: EM132648564

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