Result with fisher equation

Reference no: EM131798208

The adjusted close prices of Wendy's Group, Inc., for the first three months of 2008 are presented in the following table. Also included in the table is the corresponding consumer price index (CPI).

1860_corresponding consumer price index.png

a. Find the real rate of return for the three months by first using the CPI to deflate the adjusted close price.

b. Replicate the above result with Fisher's equation, based on the nominal rate of return and the inflation rate.

Reference no: EM131798208

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