Tim has invested $10,000 in several mutual funds. After 10 years, his investments are worth $18,000. His nominal annual rate of return is 8%. What information does he need in order to calculate his real rate of return?

Select the best answer from the choices provided.

the average return of the entire stock exchange during those years

the performance of the individual stocks in the mutual funds

the average prime rate over those years

the inflation rate over those years

Question

Trevin Phelps

Business

5 July, 01:00

Tim has invested $10,000 in several mutual funds. After 10 years, his investments are worth $18,000. His nominal annual rate of return is 8%. What information does he need in order to calculate his real rate of return?

Select the best answer from the choices provided.

the average return of the entire stock exchange during those years

the performance of the individual stocks in the mutual funds

the average prime rate over those years

the inflation rate over those years

+5

Answers (1)

Know the Answer?

Jamarcus Stokes · Answer 1

The right answer for the question that is being asked and shown above is that: "the average return of the entire stock exchange during those years." The information that does he need in order to calculate his real rate of return is that the average return of the entire stock exchange during those years