If an investor had a $100,000 long-term capital gain on a $100,000 investment from 1984 to 2010, her real rate of return was most likely
A)equal to the expected rate of inflation.
B)positive.
C)very near zero..
D)negative.

Question

Quizplus · Accepted Answer

The real rate of return accounts for inflation. Over a long period like 1984 to 2010, inflation likely eroded most of the nominal gains, making the real return close to zero.

If an Investor Had a $100,000 Long-Term Capital Gain on a $100,000