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

By Investopedia AAA
A:

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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