Frequently Asked Question

February 23 2010  |  Filed Under » ,

The real rate of return is the amount of interest earned over and above the?

The real rate of return is the amount of interest earned over and above the: a. discount rate.

b. tax rate.

c. inflation rate.

d. risk-free rate of return.




The correct answer is “c”, since the real rate of return measures the investor’s rate of return in excess of the inflation rate.

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