An investment offers a 13 percent total return over the


I know this is simpler than I'm making it, so a quick explanation/formula would be great! I saw a similar problem but when I followed the same technique, I was incorrect.

An investment offers a 13 percent total return over the coming year. Bill Bernanke thinks the total real return on this investment will be only 7 percent.

Required:

What does Bill believe the inflation rate will be over the next year?

 

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: An investment offers a 13 percent total return over the
Reference No:- TGS0626562

Expected delivery within 24 Hours