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    If the Nominal Rate of Return on Investment Is 6
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If the Nominal Rate of Return on Investment Is 6

Question 31

Question 31

Multiple Choice

If the nominal rate of return on investment is 6% and inflation is 2% over a holding period, what is the real rate of return on this investment?


A) 3.92%
B) 4%
C) 4.12%
D) 6%

Correct Answer:

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