A portfolio manager invested $1,800,000 in bonds in 2007. In one
year the market value of the bonds dropped to $1,786,000. The
interest payments during the year totaled $104,000.
a.
What was the manager’s total rate of return for the year?
(Round your answer to 2 decimal
places.)
Total rate of
return
%
b.
What was the manager’s real rate of return if the inflation rate
during the year was 2.9%? (Round your answer to 2 decimal
places.)
Real...