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Rate of return which is made up of risk free and...

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Management Accounting
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Rate of return, which is made up of risk free and business risk element is known

Answer & Solution
Correct Answer: Option C
Rate of return, which is made up of risk free and business risk element is known as real rate of return. A real rate of return is the annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external factors.
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