Question: If you require a real growth in the purchasing power of your investment of 8%, and you expect the rate of inflation over the next

If you require a real growth in the purchasing power of your investment of 8%, and you expect the rate of inflation over the next year to be 3%, what is the lowest nominal return that you would be satisfied with?

Select one:

a.

11.24%

b.

3%

c.

11%

d.

8%

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