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2 For a given investment, the real rate of interest is 3.9% and the investment's nominal rate of return is 8.7% 3 points each) a

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2 For a given investment, the real rate of interest is 3.9% and the investment's nominal rate of return is 8.7% 3 points each) a Why are these two rates different? What is the difference in what they measure? b. How are these two rates related? 3 You are considering two stock investments Stock Akan anak premium of 18.5% and Stock Bhas a risk promium of 22 5% for which stock would you require a higher return? Why? (3 points)

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