Question: What are the components that make up the total return of an investment? Question options: 1) A real rate of return and compensation for inflation.

What are the components that make up the total return of an investment?

Question options:

1)

A real rate of return and compensation for inflation.

2)

Compensation for inflation and a risk premium.

3)

A real rate of return, compensation for inflation, and a risk premium.

4)

A real rate of return, compensation for inflation, a risk premium, and compensation for long duration commitment of funds.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!