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Your share portfolio has an expected nominal total return of 8% pa and nominal dividend return of 3% PA.Inflation is expected to be 2% PA.All
Your share portfolio has an expected nominal total return of 8% pa and nominal dividend return of 3% PA.Inflation is expected to be 2% PA.All of the above rates are nominal effective rates and investors believe that they will stay the same in perpetuity. Which of the following statements is NOT correct? O a. The nominal expected capital return is 5% pa. O b. The real expected capital return is 2.9412% pa. O c. The real expected total return is 5.8824% pa. O d. The real expected dividend return is 0.9804% pa. O e. In real terms, share prices will rise. In nominal terms, share prices will increase by more than the rate of inflation
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