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lions [1.4K]
3 years ago
14

An investment had a nominal return of 11.1 percent last year. If the real return on the investment was only 7.3 percent, what wa

s the inflation rate for the year
Business
1 answer:
nordsb [41]3 years ago
7 0

Answer:

inflation rate= 3.8%

Explanation:

Giving the following information:

Nominal return= 11.1 percent

Real return= 7.3 percent

<u>The real return on investments is the difference between the nominal return and the inflation rate.</u>

Real return= nominal return - inflation rate

inflation rate= nominal return - real return

inflation rate= 11.1 - 7.3

inflation rate= 3.8%

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This production range is called Relevant range because the expected fixed cost will not vary if the production is in the range 120000 to 150000.

Also, the for increase in production more than 150000 will lead to the extra cost or if the production is less than 120000 the company may need to reduce its fixed cost.

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The same is to be considered

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\Select the three generic business strategies Porter identified for entering a new market. Multiple select question. Focused lea
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