What Is the Nominal Return

question 35

Multiple Choice

What is the nominal return?

• A)The return on assets based on the actual number of dollars received.
• B)The return on assets based on the inflation-adjusted number of dollars received.
• C)The return on assets assuming compounding one time per year.
• D)The return on assets based on the APR.
• E)None of the above.

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Definitions:

Slope

In mathematics and economics, it's the measure of the steepness or incline, often used to describe a change in a variable in relation to a change in another variable.

45-degree Line

In economics, a reference line that represents where the quantity demanded equals the quantity supplied.

Indeterminate

A state in which something cannot be exactly established, known, or decided.

Positive

A descriptor indicating an increase, growth, or beneficial effect in a particular context.