What Nominal Return Was Received by an Investor When Inflation

question 110

Multiple Choice

What nominal return was received by an investor when inflation averaged 8.0% and the real rate of return was a negative 2.5%?

• A) 5.30%
• B) 5.75%
• C) 6.50%
• D) 10.77%

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Definitions:

Partial Reinforcement

A conditioning schedule in which a reward is not provided every time the desired behavior is performed, leading to more resistant learned behaviors.

Extinction Procedure

A behavioral technique in which reinforcement of a previously reinforced behavior is discontinued, leading to a decrease in the frequency of the behavior.

Operant Conditioning

A process of acquiring knowledge in which the force of an activity is changed by either positive reinforcement or penalties.

Token Economy

A behavioral therapy method that involves rewarding desired behaviors with tokens that can be exchanged for various privileges or treats.