Distinguish the nominal rate of return from the real rate of return. <:> Real rate of return is the rate of return demanded to cover investment risk : Nominal rate of return is the rate of return demanded to cover investment risk E Select the elements that make up each of the real and nominal rates of return. (Leave unused input elds blank.) The real rate is made up of: The nominal rate is made up of: Real rate of return is the rate of return demanded to cover investment risk and the decline in general purchasing power of the monetary unit as a result of expected inflation. ik. ) if there is no inflation.Nominal rate of return is the rate of return demanded to cover investment risk ik. ) and the decline in general purchasing power of the monetary unit as a result of expected inflation. if there is no inflation.