Assume that last year your purchased a real asset, say a piece of land, for $50,000. You paid $5,000 down and borrowed the balance. The rate of inflation between last year and this year was 7%. If the value of this asset increased at exactly the rate of inflation, and you sold it 365 days from the time you bought it, the nominal rate of return on your investment was:

70%

0%

7%

63%

Refer to question 19, above. What was the real rate of return on your investment?

63%

70%

0%

7%

Refer to question 19. What would have been your nominal rate of return had you not been leveraged?

0%

63%

7%

70%

Refer to question 19. What would have been your real return had you not been leveraged?

70%

63%

0%

7%