Calculate the dollar rate of return and the real rate of return on following assets :
a) A painting whose price rises from to in a year if the painting’s price rises from $150,000 to $200,000 in a year and prices of other goods and services rise by 10%.
b) On a 5,000 pound sterling deposit in a London bank in a year when the interest rate on pounds is 6% and the dollar/pound exchange rate moves from $1.51 per pound to $1.44 per pound and prices of all goods and services rises by 1%.