9-6 Rates of return Nominal ys. real 1+ real ror 1 nominal ror 1 inflation rate 1+ real ror=1+395=1.373 real ror=37.3%o Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 9- 6 Irwin/McGraw-Hill Rates of Return Nominal vs. Real 1+ real ror = 1 + nominal ro r 1 + inflation rate real ror 37.3% 1+ real ror = 1.373 1+.016 1+.395 = =