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Provided the Return on a Security Is 5% P 2.33% 2.33 \%

Question 21

Multiple Choice

Provided the return on a security is 5% p.a.and the inflation rate is 3.5%,what is the real rate of return on this security per year?


A) 2.33% 2.33 \%
B) 1.44% 1.44 \%
C) −0.97% -0.97 \%
D) −2.33% -2.33 \%

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