You're considering an investment that you expect will produce a return of 77 percent next year, and you expect that your real r

Question

3 years ago

5

ate of return on this investment will be 33 percent. what do you expect inflation to be next year?

1 answer:

den301095 [7] · Answer 1 · 2022-02-18T03:16:16+03:00

6 0

This problem is simply straight forward. The total rate of return is simply the sum of the real rate of return and the inflation rate, that is:

77% = 33% + Inflation Rate

Therefore inflation is:

Inflation Rate = 77% - 33%

<span>Inflation Rate = 44%</span>

You're considering an investment that you expect will produce a return of 77 percent next​ year, and you expect that your real r