menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Investments Study Set 2
  4. Exam
    Exam 5: Introduction to Risk,return,and the Historical Record
  5. Question
    If the Annual Real Rate of Interest Is 2
Solved

If the Annual Real Rate of Interest Is 2

Question 79

Question 79

Multiple Choice

If the annual real rate of interest is 2.5% and the expected inflation rate is 3.4%,the nominal rate of interest would be approximately


A) 4.9%.
B) 0.9%.
C) -0.9%.
D) 7%.
E) none of the above.

Correct Answer:

verifed

Verified

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

Related Questions

Q65: Which of the following statement(s) is(are) true?I)

Q74: _ is a risk measure that indicates

Q75: You purchased a share of stock for

Q76: The historical arithmetic rate of return on

Q77: You purchased a share of stock for

Q78: You have been given this probability

Q80: A year ago,you invested $1,000 in a

Q81: When comparing investments with different horizons the

Q83: Annual Percentage Rates (APRs)are computed using<br>A)simple interest.<br>B)compound

Q84: An investment provides a 1.25% return quarterly,its

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines