1. If an investment promises a nominal return of 6 percent and the infl ation rate is 1 percent, what is the real return? 2. Using Figure 6.5, how would you estimate the probability that the return on...

1. If an investment promises a nominal return of 6 percent and the infl ation rate is 1 percent, what is the real return?

2. Using Figure 6.5, how would you estimate the probability that the return on the stock market will exceed 30 percent in any given year?

May 26, 2022