Sarah Earned a 3

question 96

Multiple Choice

Sarah earned a 3.3 percent real rate of return on her investments for the past year.During that time, the risk-free rate was 3.6 percent and the inflation rate was 3.1 percent.What was her nominal rate of return?

• A)5.30 percent
• B)6.06 percent
• C)6.50 percent
• D)6.67 percent
• E)6.91 percent

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Definitions:

Lactase

An enzyme produced in the small intestine that breaks down lactose, a sugar found in milk, into glucose and galactose.

Small Intestine

The segment of the digestive system located between the stomach and the large intestine, responsible for the majority of nutrient digestion and absorption.

Lactase

An enzyme that helps in the digestion of lactose, a sugar found in milk and dairy products.

Glucose

A plain sugar important for energy in organisms and included in various carb compositions.