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15. Which of the following statements is true? a The expected rate of return is not a guaranteed rate of return. Investment carries risk. b
15. Which of the following statements is true?
a | The expected rate of return is not a guaranteed rate of return. Investment carries risk. |
b | The real interest rate (nominal rate - expected inflation) is the real cost of investment. |
c | The interest rate represents either the cost of borrowed funds or the opportunity cost of investing your own funds (which is forgone income). |
d | All of the above. |
e | Only a) and b) |
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