Multiple Choice
How much would an investor need to receive in nominal return if she desires a real return of 4 percent and the rate of inflation is 5 percent?
A) 4.20 percent
B) 8.64 percent
C) 9.00 percent
D) 9.20 percent 1.04 = 1 + nominal return/1.05
Correct Answer:
Verified
Correct Answer:
Verified
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