Say you own an asset that had a total return last year of 11.6%.
If the inflation rate last year was 6.7%, what was your real return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Fisher Equation:
Fisher equation, named after economist Irving Fisher, is an economic theory that relates nominal interest rate to the real interest rate and the expected rate of inflation. The approximate version of the equation states that nominal interest rate is the sum of real interest rate and the rate of inflation.
