You Recently Earned a 13% Return on an Investment During

question 51

Multiple Choice

You recently earned a 13% return on an investment during the preceding year.If the rate of inflation during that period is 8% what was your real return during that period?

• A) 5%
• B) 4.63%
• C) 4.42%
• D) none of the above.

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Definitions:

Nominal Levels

The simplest form of categorization of data without any order or rank among the categories, where numbers serve merely as labels.

Mutually Exclusive

Events or conditions that cannot occur at the same time.

Underlying Continuum

An uninterrupted sequence or range in which items change gradually from one condition, form, or level to another, and are not perceived as discrete steps.

Nominal Level

The most basic level of measurement that categorizes data without implying any quantitative order or degree of difference between the categories.