What Nominal Return Was Received by an Investor When Inflation

question 39

Multiple Choice

What nominal return was received by an investor when inflation averaged 3.46% and the real rate of return was 2.5%?

• A) 0.96%
• B) 5.96%
• C) 6.05%
• D) 5.47%

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Definitions:

Critical Thinking

The process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and evaluating information to reach an answer or conclusion.

Interdependence

A dynamic of being mutually reliant on each other, where the actions of one entity or person affect the outcome of another.

Cohesiveness

The degree to which members of a group or team are united and work together to achieve a common goal.

Person Perception

The process of forming impressions and making judgments about the characteristics and motives of others.