Multiple Choice
A major difference between real and nominal returns is that:
A) real returns adjust for inflation, and nominal returns do not.
B) real returns use actual cash flows, and nominal returns use expected cash flows.
C) real returns adjust for commissions, and nominal returns do not.
D) real returns show after-tax returns, and nominal returns show before-tax returns.
Correct Answer:

Verified
Correct Answer:
Verified
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