Calculate the value of the cpi at the date of jeans


An investor buys the $500,000 of shares of stock in a diversified bundle of Bio-tech firms and exactly one year later sells those shares for $530,000. Suppose the value of the CPI at the date of Jean's purchase was 190 and rose by the sale date one year later to 200 while the value of the GDP Deflator was 120 at the time of her purchase and rose to 125 by the date she sold her shares. Explain what was Jean's real rate of return on this investment?

Request for Solution File

Ask an Expert for Answer!!
Macroeconomics: Calculate the value of the cpi at the date of jeans
Reference No:- TGS0870495

Expected delivery within 24 Hours