A Major Difference Between Real and Nominal Returns Is That

question 42

Multiple Choice

A major difference between real and nominal returns is that:

• A) real returns adjust for inflation, and nominal returns do not.
• B) real returns use actual cash flows, and nominal returns use expected cash flows.
• C) real returns adjust for commissions, and nominal returns do not.
• D) real returns show after-tax returns, and nominal returns show before-tax returns.

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Definitions:

Inherited

refers to traits or conditions that are passed from parents to their offspring through genes.

Height

The measurement of someone or something from base to top or from head to foot.

Critical Period

A specific time in development when the presence or absence of certain experiences or stimuli has a long-lasting influence on the individual.

Critical Period

A specific time frame during the development of an organism when it is particularly sensitive to certain environmental stimuli that are necessary for proper development.