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aleksandr82 [10.1K]
3 years ago
13

Q4) An investment offers a total return of 12.8 percent over the coming year. Janice thinks the total real return on this invest

ment will be only 7 percent. What does Janice believe the approximate inflation rate will be over the next year
Business
1 answer:
Blizzard [7]3 years ago
7 0

Answer:

inflation rate= 5.8%

Explanation:

Giving the following information:

An investment offers a total return of 12.8 percent over the coming year. Janice thinks the total real return on this investment will be only 7 percent.

<u>The real return on investment includes the effect on inflation. </u>

Real rate of return= total return - inflation rate

0.07=0.128 -  inflation rate

inflation rate= 0.058= 5.8%

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Answer:

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Explanation:

As we know that outward shift refers to the growth.

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The main reasons of this outward shift were:

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