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Chrome File Edit View History Bookmarks People Window Help 1 100 Mil Thu 11:56 PM Hassan Alsaihati Q ..D Assignment 8-GRADED × e Home lChegg.com ezto.mheducation.com/hm.tpx :: Apps UWM-, hotmail A ALEKS MathwayPEX Expedia-CR Hassan EagleRider Rentals AT&T; Pay Onlir at VIP (D DWileyPLUS OjuJ Principles of Finance 350: Fall 2017-001 HASSAN ALSAIHATI FINANCE Assignment 8- GRADED instructions I help Question 3 (of 6) - a Save & Exit Submit value: 1.00 points You did not receive full credit for this question in a previous attempt Say you own an asset that had a total retum last year of 15 percent. Assume the inflation rate last year was 3.9 percent. What was your real return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Real return Hints eBook & Resources Hint #1 Hint #2

Explanation / Answer

I would use two methods:

Real return using fischer equation=((1+15%)/(1+3.9%))-1=10.68%

Real return using approximation method=15%-3.9%=11.10%

the above are the answers

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