1. nominal rate of return
  2. accrual accounting rate of return
  3. real rate of return
  4. required rate of return
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1 Answers

Answer: Option 3

Rate of return, which is made up of risk free and business risk element is known as real rate of return. A real rate of return is the annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external factors.

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