Answer:
The answer is -0.8704%= -0.9%
Explanation:
A real rate of return is the annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external factors.
Real rate of return=[ (1+nominal rate) / (1+ inflation rate) - 1]
Real rate of return = (1.025/1.034) -1= -0.0087* 100= -0.087%
