Your Portfolio Had a 10

question 12

Multiple Choice

Your portfolio had a 10.2 percent real return last year. If the inflation rate was 4.3 percent, what was the approximate nominal return of your portfolio?

• A) 12.8%
• B) 14.5%
• C) 6.7%
• D) 10.2%
• E) 5.9%

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Definitions:

Simplify

The process of making an expression easier to understand by reducing it to its simplest form.

Expression

A combination of symbols and numbers to represent a mathematical operation or quantity.

Radical Expression

An expression that contains a square root, cube root, or another root.

Evaluate

To assess the value of an expression.