Question

Natalie bought iFruit stock and its value increased by 10% after one year. During this time, the total stock market rose 8%, the average prime rate was 6.5%, and the annual inflation rate was 4.5%. What was the real rate of return on Natalie's investment?

Answer 1

Her return of investment is C. 5.5%. The reason for this is because the 8% and the 6.5% does not have to do with return in the investment.