The Costaguanan stock market provided a rate of return of 95%. The inflation rate in Costaguana during the year was 83%. In the United States, in contrast, the stock market return was only 14%, but the inflation rate was only 3%.
Calculate the real rate of return for both the Costaguana and the United States stock markets. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Real rate of return
Costaguana %
United States %
Which country’s stock market provided the higher real rate of return?
United States
Costaguana