The Costaguana stock market provided a rate of return of 93%. The inflation rate in Costaguana during the year was 80%. In Ruritania the stock market return was 13%, but the inflation rate was only 4%. Calculate the real rate of return for Costaguana stock market? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Calculate the real rate of return for Ruritania stock market? Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Which country's stock market provided the higher real rate of return?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The Costaguana stock market provided a rate of return of 93%. The inflation rate in Costaguana during the year was 80%. In Ruritania the stock market return was 13%, but the inflation rate was only 4%.

  1. Calculate the real rate of return for Costaguana stock market?

    Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

  2. Calculate the real rate of return for Ruritania stock market?

    Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

  3. Which country's stock market provided the higher real rate of return?
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