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The Real Rate of Return on a Stock Is Approximately

Question 311

Multiple Choice

The real rate of return on a stock is approximately equal to the nominal rate of return:


A) Multiplied by (1 + inflation rate) .
B) Plus the inflation rate.
C) Minus the inflation rate.
D) Divided by (1 + inflation rate) .
E) Divided by (1 - inflation rate) .

Correct Answer:

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