How Much Would an Investor Need to Receive in Nominal

question 23

Multiple Choice

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

• A)4.20 percent
• B)8.64 percent
• C)9.00 percent
• D)9.20 percent 1.04 = 1 + nominal return/1.05

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Definitions:

Tumor

An abnormal growth of tissue that can be benign (non-cancerous) or malignant (cancerous), arising from an uncontrolled division of cells.

Surgery

A medical procedure involving the manual and instrumental techniques to investigate or treat a pathological condition such as disease or injury.

Amnesiac

A person suffering from amnesia, which is a condition that results in the loss of memories, such as facts, information, and experiences.

Long-term Memories

Memories that can be retained for extended periods of time, ranging from days to decades, and include events, facts, and experiences.