Exercise 19-5 Algo
A portfolio manager invested $1,700,000 in bonds in 2007. In one
year the market value of the bonds dropped to $1,686,000. The
interest payments during the year totaled $114,000. |
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 2.3%? (Round your answer to 2 decimal places.) |
Real rate of return | % |
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