Solved

If You Are Promised a Nominal Return of 12% on a One

Question 83

Multiple Choice

If you are promised a nominal return of 12% on a one year investment,and you expect the rate of inflation to be 3%,what real rate do you expect to earn?


A) 5.48%
B) 8.74%
C) 9.00%
D) 12.00%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q1: The dollar-weighted return is the _.<br>A) difference

Q32: Both investors and gamblers take on risk.

Q73: You have the following rates of return

Q74: When calculating the variance of a portfolio's

Q75: You are considering investing $1,000 in a

Q77: During the 1985 to 2008 period the

Q78: The holding period return on a stock

Q80: You invest all of your money in

Q82: Treasury bills are paying a 4% rate

Q83: You have $500,000 available to invest. The