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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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