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LenaWriter [7]
1 year ago
13

the narnian stock market had a rate of return of 45% last year, but the inflation rate was 30%. what was the real rate of return

to narnian investors? (round your answer to 2 decimal places.)
Business
1 answer:
Virty [35]1 year ago
6 0

The annual percentage of profit on an investment that has been prorated for inflation is known as the real rate of return. As a result, the real rate of return provides an accurate representation of the real purchasing power of a particular sum of money over time.

The investor can calculate how much of a nominal return is real return by adjusting the nominal return to account for inflation.

Real rate of return is one plus nominal rate of return.

(1 plus the inflation rate) (1 plus 0.45 = (1 plus 0.30)

(1 + rate of inflation)

The inflation rate is equal to [(1 + 0.45 / (1 + 0.30)]. 1 Inflation rate equals 0.1154 percent, or 11.54%

Real rate of return has the drawback that its value is unknown until after the event has taken place. That is to say, inflation is a trailing indicator for any particular period, meaning it can only be measured after the relevant period has ended.

To know more about inflation, click here:-

brainly.com/question/28190771

#SPJ4

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Answer:

Student responses will vary, but should include: A young investor has years of earning power and can take greater risks because he/she has time to make-up for losses. An older investor needs more security and current income from their investments because they are using it to retire on or they need it to continually grow so that they can retire.

Explanation:

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3 years ago
Dylan, a vice president of human resources, recommends adding self-appraisals to the company's performance management system. Th
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Explanation:

Self-appraisal is one of the best method to assess themselves of what kind of contribution that he has made to the company to grow.

He can also look back about the opportunities that the company has given to him to perform.

This actually,

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So the chosen statement supports Dylan's idea.

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2 years ago
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6 0
3 years ago
Because Brianna loves Chinese food, she was eager to check out a new Chinese restaurant. The restaurant had undertaken a large-s
Lana71 [14]

The Chinese restaurant failed to realize the importance of "word-of-mouth marketing."

<h3>What is word-of-mouth marketing?</h3>

Whenever a consumer's interest inside a company's service or product is reflected in their regular conversations, this is referred to as word-of-mouth marketing (also WOM marketing). Basically, it is free promotion brought on by consumer experiences, which are typically above and beyond their expectations.

Some key features regarding word-of-mouth marketing are-

  • Word-of-mouth marketing occurs when customers recommend a business's goods or services to their friends, relatives, and other people they value highly.
  • WOM marketing is among the most effective kinds of advertising since 88% of consumers prefer suggestions from their friends than those in traditional media.
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To know more about the word-of-mouth marketing, here

brainly.com/question/15472521

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6 0
1 year ago
If a firm's forecasted sales are $250,000 and its break-even sales are $190,000, the margin of safety in dollars is: Multiple Ch
Oliga [24]

Answer:

Margin of safety= $60,000

Explanation:

Giving the following information:

A firm's forecasted sales are $250,000 and its break-even sales are $190,000.

The margin of safety is the excess of sales from the break-even point. To calculate the margin of safety, we need to use the following formula:

Margin of safety= (current sales level - break-even point)

Margin of safety= 250,000 - 190,000= 60,000

6 0
3 years ago
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