Real Rates of Return Are Typically Less Than Nominal Rates

question 88

Multiple Choice

Real rates of return are typically less than nominal rates of return due to:

• A)Inflation.
• B)Capital gains.
• C)Dividend payments.
• D)Depreciation.

---

Definitions:

Ethical Development

The process of learning, understanding, and applying ethical principles and values in decision-making and behavior.

Sarbanes-Oxley Act

This act, enacted in 2002, aims to protect investors from the possibility of fraudulent accounting activities by corporations.

Corporate Fraud

It involves illegal activities undertaken by an individual or company in a deceitful manner, typically to gain a financial advantage.

Sarbanes-Oxley Act

U.S. legislation enacted in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations, increasing transparency and accountability in corporate governance.