A real rate of return is defined as a rate that has been adjusted for which one of the following
A Real Rate of Return is defined as a rate that has been adjusted for Inflation. It is basically the percentage returns earn on an investment. It is calculated after the adjustment of prices.
For example, If you invested $1,000,000 in a stock which has a nominal return of 10% and the inflation rate is 2%, the real rate of return shall be 8%(10% - 2%). In this case, the real return shall be 8%, although it seems like it is 10%, it is not so because inflation has reduced your return by 2%.
A real rate of return is defined as a rate that has been adjusted for which...
What has been the average annual rate of return in real terms for a portfolio of U.S. common stocks between 1900 and 2014?
The Real rate of return which is the annualized rate of return on an investment plus the rate of inflation. My question is whether the Real rate of return also takes into account the effect of taxation ?
Interest rate fundamentals: The real rate of return Carl Foster, a trainee at an investment banking firm, is trying to get an idea of what real rate of return investors are expecting in today's marketplace. He has looked up the rate paid on 3-month U.S. Treasury bills and found it to be 1.5%. He has decided to use the recent rate of change in the Consumer Price Index as a proxy for the inflationary expectations of investors. That annualized rate...
Assume a function named findMin has been defined to return the Index position of the smallest value in an array of double values. Which of the following would be the correct way to call the findin function from main, given the following array definition: double areas () - (5.2. 12.3, 7.0.3.4, 6,8); a, int smallloc = findMin ( areas); b. int smallloc - findMin ( areas [1.5); c. int small.oc - findMin ( areas, 5); d. double smallloc = find...
Assume a function named find Min has been defined to return the index position of the smallest value in an array of double values. Which of the following would be the correct way to call the findMin function from main , given the following array definition: double areas [ ] = {5.2. 12.3, 7.0, 3.4, 6.8 }; a. int smallLoc = findMin ( areas); b. int smallLoc = findMin ( areas [ ],5); O c. int smallLoc = findMin (...
The internal rate of return is defined as the: A. discount rate that causes the profitability index for a project to equal zero. B. discount rate which equates the net present value of cash inflows to the net present value of cash outflows to zero. C. maximum rate of return a firm expects to earn on a project. D. rate of return a project will generate if the project in financed solely with internal funds.
which 1 of these is usually not considered a determinant of expected real rate of return on investment:
The internal rate of return is defined as the: O Discount rate that causes the profitability index for a project to equal zero. O Rate of return a project will generate if the project in financed solely with internal funds. O Discount rate that equates the net cash inflows of a project to zero. O Maximum rate of return a firm expects to earn on a project. O Discount rate which causes the net present value of a project to...
tag2 155 Which of the following lending agreements represents the highest real rate of return for a bank when it lends its money to a customer? a nominal interest rate of 6% with 10% inflation a nominal interest rate of 8% with 1% inflation O a nominal interest rate of 10% with 5% inflation a nominal interest rate of 19% with 13% inflation
P6-1 (book/static) Question Help Interest rate fundamentals: The real rate of return Carl Foster, a trainee at an investment banking firm, is trying to get an idea of what real rate of return investors are expecting in today's marketplace. He has looked up the rate paid on 3-month U.S. Treasury bills and found it to be 1.5%. He has decided to use the recent rate of change in the Consumer Price Index as a proxy for the inflationary expectations of...