In deriving changes in wealth over time, the return relative solves the problem of:
A) inflation.
B) negative returns.
C) interest rates.
D) tax differences.

Name: In deriving changes in wealth over time, the return relative solves the problem of: A) inflation. B) negative returns. C) interest rates. D) tax differences.
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Question

In deriving changes in wealth over time, the return relative solves the problem of:
A) inflation. 
B) negative returns.
C) interest rates.
D) tax differences.

Quizplus · Accepted Answer

The return relative is a measure that ensures returns are always positive by expressing them as a ratio, thus solving the problem of negative returns.

In Deriving Changes in Wealth Over Time, the Return Relative