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%

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Definitions:

Relaxation Techniques

Methods or practices used to reduce stress, tension, and anxiety in the body and mind.

Stress

A physical or psychological response to internal or external pressures, perceived as challenging or threatening to an individual's well-being.

Exercise

Physical activities undertaken to improve or maintain one's health and physical fitness.

Reduce

To make smaller or less in amount, degree, or size; a process of diminishing or decreasing.