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A Brochure for an Investment Company Reports Average Nominal Returns

Question 76

Multiple Choice

A brochure for an investment company reports average nominal returns of 9% per year.If the economy has averaged 3% inflation over these years,what is the average real return for this investment company?


A) 3.00%
B) 5.83%
C) 6.00%
D) 9.00%

Correct Answer:

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