Rate of return to cover a risk of investment and decrease in purchasing power, as a result of inflation is known as
A. nominal rate of return
B. accrual accounting rate of return
C. real rate of return
D. required rate of return
Answer: Option A
Solution (By Examveda Team)
Rate of return to cover a risk of investment and decrease in purchasing power, as a result of inflation is known as nominal rate of return. The nominal rate of return is the amount of money generated by an investment before factoring in expenses such as taxes, investment fees, and inflation.This Question Belongs to Management >> Management Accounting
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