(Answered) Question regarding the real rate of return

Management Studies

Problem: You earned 15.9% on your investments for a time period when the risk-free rate was 7.3% and the inflation rate was 5.8%. Please show steps how you get an answer and please be clear in your explanation.

Required:

Question: What was your real rate of return? (Hint: Use equation 7.2 on page 220)

a. 9.89%
b. 9.55%
c. 10.60%
d. 8.45%
e. 10.10%

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