Which of the following is the formula to compute the nominal rate of return?
A) Nominal rate = (1 + Real rate) (1 + Inflation rate) - 1
B) Nominal rate = (1 - Real rate) (1 - Inflation rate) - 1
C) Nominal rate = (1 × Real rate) (1 + Inflation rate) + 1
D) Nominal rate = (1 / Real rate) + (1 + Inflation rate) / 1
E) Nominal rate = (1 - Real rate) / (1 - Inflation rate) + 1
Correct Answer:
Verified
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