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Sir what’s the benefit. Of a real rate of return
I cannot find it anywhere in the text
It is not a question of there being a benefit.
The higher the rate of inflation then the higher the rate of return that investors in a company will require. They need a higher return to cover the inflation they are suffering.
The real rate of return is the return they are getting after taking out the inflation.
I explain all this in my free lectures and if you are watching my lectures then you do not really need a study text because they are a complete free course and cover everything needed to be able to pass the exam well.
The essential book is a Revision Kit from one of the ACCA Approved Publisher because it is full of past exam and other exam standard questions for practice once you have finished studying. Practice is vital to passing the exam.
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