Which of the following statements about return objectives is TRUE
A: To achieve the capital appreciation objective, the nominal rate of return must exceed the rate of inflation.
B: The total return objective considers returns from both capital gains and current income, net of expected inflation.
C: The current income objective is usually appropriate when an investor requires the purchasing power of the initial investment to increase over time.
A: To achieve the capital appreciation objective, the nominal rate of return must exceed the rate of inflation.
B: The total return objective considers returns from both capital gains and current income, net of expected inflation.
C: The current income objective is usually appropriate when an investor requires the purchasing power of the initial investment to increase over time.
举一反三
- Which of the following statements about return objectives is FALSE（） A: To achieve the capital appreciation objective, the nominal rate of return must exceed the rate of inflation. B: The total return objective is riskier than the current income objective and less risky than the capital appreciation objective. C: To achieve the capital preservation objective, the nominal rate of return must exceed the inflation rate.
- if the nominal interest rate offered on a three-year deposit is 4% and the inflation rate over this period is 3%, the investor’s real rate of return is _____、
- 中国大学MOOC: The relationship between the nominal rate of return, the real rate of return and the rate of inflation is(1 + nominal rate) = (1 + real rate)´ (1 + inflation rate).
- A decrease in the expected rate of inflation will _________ the expected return on bonds relative to that on _________ assets.
- If the rate of inflation in the United States is 4% and the rate of<br/>inflation in the United Kingdom is 3%, relative purchasing power<br/>would predict that( ) A: the pound will appreciate relative to the dollar. B: the pound will depreciate relative to the dollar. C: both the dollar and the pound will depreciate due to inflation. D: both the dollar and the pound will appreciate due to inflation.