Frequently Asked Question
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.
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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