The nominal rate of return

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Reference no: EM131605825

1. The nominal rate of return is

the rate of return you earn after subtracting out the rate of inflation.

the additional purchasing power that a risky asset provides.

a portfolio's excess return (i.e., Rp - Rf).

the everyday quoted rate of return and includes the risk-free rate plus a variety of risk premiums.

2. The points on a CAL represent

the risk return trade off between the risky portfolio and the risk free asset (T-bill)

the different combinations between the risky portfolio and risk free asset

the opportunity set of all possible combinations of risky assets and their corresponding returns

Both A and B

Reference no: EM131605825

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