ou are promised a nominal return of 12% on a one year investment, and you expect the rate of inflation to be 3%, what real rate do you expect to earn?...

If you are promised a nominal return of 12% on a one year investment, and you expect the rate of inflation to be 3%, what real rate do you expect to earn?

Question:If you are promised a nominal return of 12% on a one year investment, and you expect the rateof inflation to be 3%, what real rate do you expect to earn?Solution:Computation of Real...