Nominal Rate of Return
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I earned a 3.1 percent real rate of return on my investments for the past year. During that time, the risk-free rate was 3.7 percent and the inflation rate was 2.9 percent. What is my nominal rate of return?
1. 5.78%
2. 6.00%
3. 6.09%
4. 6.80%
5. 6.91%
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This explain the steps to compute the Nominal Rate of Return.
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I earned a 3.1 percent real rate of return on my investments for the past year. ...
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