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What Nominal Annual Return Is Required on an Investment in Order

Question 22

Multiple Choice

What nominal annual return is required on an investment in order that an investor experiences a 12 percent gain in purchasing power? Assume inflation to be 4 percent.


A) 7.69 percent
B) 9.29 percent
C) 12.00 percent
D) 16.48 percent

Correct Answer:

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