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Cuestos < Quesnon 3 (of 10) Seve &Ext Subn velue 10.00 points Say you own an asset that had a total return last year of 11 2
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Answer #1

real rate of return = [(1+ nominal return) / (1+inflation rate)] -1

=>[(1.112) / (1.059)]-1

=>1.05004721-1

=>0.05004721

=>5.00%.

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