What Nominal Return Was Received by an Investor When Inflation

question 25

Multiple Choice

What nominal return was received by an investor when inflation averaged 8.0 percent and the real rate of return was a negative 2.5 percent?

• A)5.30 percent
• B)5.36 percent
• C)6.50 percent
• D)10.77 percent

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Definitions:

Common Vision

A shared understanding or agreement among members of an organization or group about future goals and direction.

Committees

Groups of people designated to perform specific functions or tasks within an organization, often consisting of members with relevant expertise.

Functional Areas

Divisions within a business or organization that specialize in particular tasks or operations, such as marketing, finance, or human resources.

Work Groups

Teams within an organization focused on completing specific tasks or projects.