Total real return on investment, Finance Basics

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Total real return on investment

Problem:

An investment offers a 10 percent total return over the coming year. Alan Wingspan thinks the total real return on this investment will be only 6 percent.

Required:

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

Explain in detail and please provide all calculation.

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Finance Basics: Total real return on investment

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Finance Basics: Total real return on investment

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