Which One of the Following Statements Is Correct

question 62

Multiple Choice

Which one of the following statements is correct?

• A) The risk-free rate represents the change in purchasing power.
• B) Any return greater than the inflation rate represents the risk premium.
• C) Historical real rates of return must be positive.
• D) Nominal rates exceed real rates by the amount of the risk-free rate.
• E) The real rate must be less than the nominal rate given a positive rate of inflation.

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Definitions:

Liaison Personnel

Individuals or staff members responsible for managing communication and coordination between different departments or organizations.

Authoritative Command

A form of leadership where orders are given with authority, often without question or input from subordinates.

Avoidance

A behavioral or cognitive strategy aimed at preventing unpleasant emotions, confrontation, or failure by staying away from certain tasks, situations, or interactions.

Authoritative Command

A leadership style characterized by making decisions alone and expecting subordinates to follow instructions without question.