2. Assume Putlee invested in a commodity index when its price was $2500 in 2022 and sold it for $2720 in 2023. Over the same period, the consumer price index changed from 125 to 130. Calculate: a) Putlee's nominal rate of return on the investment b) Inflation rate during the period c) Putlee's real rate of return on the investment.

2. Assume Putlee invested in a commodity index when its price was $2500 in 2022 and sold it for $2720 in 2023. Over the same period, the consumer price index changed from 125 to 130. Calculate: a) Putlee's nominal rate of return on the investment b) Inflation rate during the period c) Putlee's real rate of return on the investment.

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter5: Currency Derivatives

Section: Chapter Questions

Problem 3BIC

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