Jae wants to invest in an index fund. His financial advisor says that this particular fund is expected to provide an annual nominal rate of return of

5%

. The financial planner also suggests that inflation will be

3%

.\ Based on these assumptions, what is the expected real rate of return?\

1.94%

\

1.69%

\

1.79%

\

1.49%

Jae wants to invest in an index fund. His financial advisor says that this particular fund is expected to provide an annual nominal rate of return of 5%. The financial planner also suggests that inflation will be 3%. Based on these assumptions, what is the expected real rate of return? 1.94% 1.69% 1.79% 1.49%