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标题: Inflation in Returns [打印本页]

作者: joehogue    时间: 2011-7-11 20:05     标题: Inflation in Returns

I'm sure this has been discussed....so sorry in advance.

Do we add it to the return at the end? Or do we link it?

example:

Calculate the required return based on expenses and portfolio as 5%. Expected inflation is 3%. Is total required return 8?%

Or is it (1.05)(1.03) - 1 = 8.15%?


Does it even matter?




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