What Is the Minimum Nominal Rate of Return That You

question 24

Multiple Choice

What is the minimum nominal rate of return that you should accept if you require a 4% real rate of return and the rate of inflation is expected to average 3.5% during the investment period?

• A) 7.36%
• B) 7.50%
• C) 7.64%
• D) 8.01%

---

Definitions:

Sea Turtles

Marine reptiles belonging to the order Testudines, characterized by a bony or cartilaginous shell and spending most of their lives in the ocean, with some species endangered due to human activities.

Pollution

The introduction of contaminants into the natural environment causing adverse change.

Mass Transit

Public transportation systems that move large numbers of people efficiently across cities and surrounding areas.