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If You Require a Real Growth in the Purchasing Power

Question 47

Multiple Choice

If you require a real growth in the purchasing power of your investment of 8%, and you expect the rate of inflation over the next year to be 3%, what is the lowest nominal return that you would be satisfied with?


A) 3%
B) 8%
C) 11%
D) 11.24%

Correct Answer:

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