Which of the Following Is the Formula to Compute the Nominal

question 75

Multiple Choice

Which of the following is the formula to compute the nominal rate of return?

• A)Nominal rate = (1 + Real rate)(1 + Inflation rate)- 1
• B)Nominal rate = (1 - Real rate)(1 - Inflation rate)- 1
• C)Nominal rate = (1 × Real rate)(1 + Inflation rate)+ 1
• D)Nominal rate = (1 / Real rate)+ (1 + Inflation rate)/ 1
• E)Nominal rate = (1 - Real rate)/ (1 - Inflation rate)+ 1

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