Rate of return to cover a risk of investment and decrease in purchasing power, as a result of inflation is known as

Rate of return to cover a risk of investment and decrease in purchasing power, as a result of inflation is known as Correct Answer nominal rate of return

Rate of return to cover a risk of investment and decrease in purchasing power, as a result of inflation is known as nominal rate of return. The nominal rate of return is the amount of money generated by an investment before factoring in expenses such as taxes, investment fees, and inflation.
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Related Questions

Read the following.
Unions demand high wages to counter inflationary pressures on the economic conditions of the working class. Higher wages enhance the purchasing power of the workers, there by raising inflation.
Which of the following inferences are wrong?
1. Unions have the sole purpose of improving the economic conditions of workers.
2. Enhanced wages increase the purchasing power of workers.
3. Inflation and purchasing power are negatively correlated.
4. Inflation drives unions to go for demanding higher wages.
Consider the following with respect to the term 'Core Inflation': A) Core Inflation is the inflation rate of a particular basket of commodities. B) Core Inflation is the sudden increase in prices of certain items of food grains.C) Core inflation is caused by supply shock in certain essential commodities.
Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer:
Assertion (A) The nominal interest rate comprises of a real interest rate and an expected rate of inflation and it adjusts when the inflation rate is expected to change. Hence, in the perfect international capital markets, real rate of returns are equal in the two countries.
Reason (R) The international fisher effects states that the nominal interest rate differential must be equal to the expected inflation rate differential In the two countries.
Rate of required return to cover risk of investment in absence of inflation is classified as
An investment of Rs. 10,000, compounded annually, is estimated to return Rs. 20,000 after 6 years from the date of investment. The expected rate of return on this investment in percentage is
The main components of market risk are a) Liquidity risk b) Interest rate risk c) Currency risk
Which of the following will be considered as tax planning effort?
1. Mr. A purchased a house for self-residence of Rs. 8 lakh by taking a loan of Rs. 60 lakh from SBI at 10% interest, instead of using his own funds.
2. Mr. A made investment in purchasing 12% redeemable debentures of TISCO worth Rs. 1.50 lakh.
3. Mr. A purchased 100 gm gold biscuits of Rs. 2.5 lakh from SBI on the occasion of Diwali.
4. Mr. A invested Rs. 1 crore in purchasing 5 acres of agricultural land in his native village in Gaya.
Which of the following statements is/are correct?
1. It is important to achieve reduction of food waste and duplication of procurement time and effort which can result from sudden menu changes or production policy shifts.
2. Purchasing in charge need to have a thorough knowledge of the market environment and the purchasing policies of those offering similar goods and services to their customers.
Select the correct answer
With reference to inflation, which of the following statement is/are correct?
1. Expansion of credit increase inflation
2. Inflation leads favourable trade surplus
Select the correct answer
A feasibility study shows that a fixed capital investment of P10,000,000 is required for a proposed construction firm and an estimated working capital of P2,000,000. Annual depreciation is estimated to be10% of the fixed capital investment. Determine the rate of return on the total investment if the annual profit is P3,500,000.