Question

The rate of return to cover a risk of investment and decrease in purchasing power, as a result of inflation is known as

a.

nominal rate of return

b.

accrual accounting rate of return

c.

real rate of return

d.

required rate of return

Answer: (a).nominal rate of return

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Q. The rate of return to cover a risk of investment and decrease in purchasing power, as a result of inflation is known as

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