Your friend Matt tells you that he expects the REAL return on GE stock to be 5% this year. He also tells you that he expects inflation to be 4% this year. Given this information, what is the expected return on GE in nominal terms? [hint: do not approximate, use the actual formula to move from real to nominal]

a. -1%

b. 5%

c. 4%

d. 8.95%

e. 9,2%