1.     Over the last year consumer price index went from 139.2 to 143.1.  Treasury bonds returned 6.5%, Treasury bills returned...

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1.     Over the last year consumer price index went from 139.2 to 143.1.  Treasury bonds returned 6.5%, Treasury bills returned 4.75%, and common stock returned 9.25%.

a.    Find the rate of inflation over the last year.

b.    Calculate the real rate of return for each investment.

    • 13 years ago
    • 3
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