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? Select the best answer from the choices provided. 3.5% 4.5% 5.5% 8%

Answer 1

8%-4.5% = 3.5%
Her return of investment is A. 5.5%.