Expected Return

[carolinesherif]

In the following equation,

R=0.11+1F(inflation)+1.2(un-employment)+E

where expected inflation is 0.051 and un-employment is 0.068

would expected inflation be 11% or 13.2%

[125mph]

@carolinesherif

where expected inflation is 0.051 and un-employment is 0.068

would expected inflation be 11% or 13.2%

You stated expected inflation is .051… then you ask if expected inflation is 11% or 13.2%?

One of those is wrong… one of those is the inflation surprise?

[mmmask]

If u meant expected return, it is 11%