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Nominal Rate of Return =
  • a)
    Real Rate of Return – Inflation
  • b)
    Real Rate of Return + Inflation
  • c)
    Inflation -Real Rate of return
  • d)
    None of the above 
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Nominal Rate of Return =a)Real Rate of Return – Inflationb)Real ...
The nominal rate of return does not equal the real rate of return. The nominal rate of return is the rate at which an investment grows over a given period of time, without adjusting for inflation. On the other hand, the real rate of return is the rate at which an investment grows after adjusting for inflation. It takes into account the purchasing power of the investment's returns.
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Nominal Rate of Return =a)Real Rate of Return – Inflationb)Real Rate of Return + Inflationc)Inflation -Real Rate of returnd)None of the aboveCorrect answer is option 'B'. Can you explain this answer?
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