Which of the Following Statements Is Correct for an Investor

Multiple Choice

Which of the following statements is correct for an investor starting with $1,000 in common stocks over a 20-year investment horizon in which stocks averaged 11 percent in nominal terms and 4 percent in real terms? The portfolio value is now approximately:

A) $1,800 in real terms.
B) $3,679 in real terms.
C) $3,870 in nominal terms.
D) $8,062 in nominal terms.