The Costaguanan stock market provided a rate of return of 97%. The inflation rate in Costaguana...

The Costaguanan stock market provided a rate of return of 97%. The inflation rate in Costaguana during the year was 78%. In Ruritania the stock market return was 17%, but the inflation rate was only 4%.

a. Calculate the rate of return for Costaguanan stock market? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
b. Calculate the rate of return for Ruritania stock market? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

c. Which country's stock market provided the higher real rate of return?

Expert Solution

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jeff jeffy answered 11 months ago

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