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:

Scientific Management

A management theory developed by Frederick W. Taylor, emphasizing time studies, work studies, and the scientific method of measuring work performance and productivity.

Deming

Pertains to W. Edwards Deming, an American engineer, statistician, professor, author, lecturer, and management consultant known for his work in quality management and process improvement.

Commitment

Refers to an individual's dedication and loyalty to a cause, activity, or organization, often manifesting in persistence and effort.

Strategies

Plans or methods created to achieve a specific goal or overcome a problem.