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:

Thymosin

A hormone produced by the thymus gland that plays a crucial role in the development and differentiation of T lymphocytes, important for the immune response.

Thyroid Gland

A gland in the neck that produces hormones regulating heart rate, body temperature, and metabolism.

Hormones

Chemical messengers produced by glands in the body that regulate physiological activities by signaling to organs and tissues.

Autocrine

a mode of hormone action where a hormone acts on the same cell that produced it.