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How is the nominal rate of return on an investment different from the real rate of return on an investment? Question 6 options: 1 )
How is the nominal rate of return on an investment different from the real rate of return on an investment?
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Trick questionthe nominal and the real rate of return are the same thing!
The nominal quoted rate of return is the rate of return without adjusting for inflation; whereas the real rate of return is the inflation adjusted rate of return.
The real rate of return is the rate of return without adjusting for inflation; whereas the nominal rate of return is the inflation adjusted rate of return.
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