The Current Real Return on an Investment Is 3

question 28

Multiple Choice

The current real return on an investment is 3%. If the nominal rate of return is 7.9%, what is the expected rate of inflation?

• A) 10.9%
• B) 7.9%
• C) 4.5%
• D) 4.9%

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Definitions:

Data Handling

The process of collecting, storing, processing, and managing data.

Extranets

Private networks that use Internet technology to share part of a business's information or operations with suppliers, vendors, partners, customers, or other businesses.

Electronic Commerce

Buying and selling goods and services through use of the internet.

Operational Effectiveness

The ability of an organization to perform activities efficiently and produce outputs effectively.