Total rate of return for the year

Reference no: EM131798434

A portfolio manager invested $1,500,000 in bonds in 2007. In one year the market value of the bonds dropped to $1,485,000. The interest payments during the year totaled $105,000.

a. What was the manager's total rate of return for the year?

b. What was the manager's real rate of return if the inflation rate during the year was 2.3%?

Reference no: EM131798434

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