How Much Would an Investor Need to Receive in Nominal

question 61

Multiple Choice

How much would an investor need to receive in nominal return if he desires a real return of 4% and the rate of inflation is 5%?

• A) 4.20%
• B) 8.64%
• C) 9.00%
• D)9.20%

---

Definitions:

Fear of Heights

An anxiety disorder characterized by an extreme and irrational fear of high places, also known as acrophobia.

Claustrophobia

An anxiety disorder characterized by an irrational fear of being enclosed in a small space or room and having no escape.

Triskaidekaphobia

The fear of the number thirteen, often associated with superstition or cultural beliefs about bad luck.

Prefrontal Cortex

The part of the brain located at the front of the frontal lobe, involved in complex behaviors such as planning, decision making, and moderating social behavior.