Real v e r sus Nominal

Real v e r sus Nominal

Real v e r sus Nominal Retu r ns. The Costaguanan stock market provided a rate of return of

95 percent. The inflation rate in Costaguana during the year was 80 percent. In the United States, in contrast, the stock market return was only 14 percent, but the inflation rate was only 3 percent. Which country’s stock market provided the higher real rate of return?

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