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EasyFinanceAcceptance 62%
Real Rate of Return
PIMCOCitadel
Your investment returns 8% over a year in which inflation is 3%. What is your exact real rate of return (in percent, to two decimals)?
Approach
Real ≠ nominal − inflation exactly.
(1.08 / 1.03) − 1.
Answer
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The answer is 4.85. Sign in free for the full worked solution and to check your own answer.
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