To earn money on your investments, your rate of return must be higher than: B. rate of inflation.
What is rate of return?
Rate of return can be defined as a net gain (profit) or loss that is associated with an investment over a specified period of time, and it's usually expressed as a percentage of the investment's initial cost.
This ultimately implies that, the rate of return must be higher than the rate of inflation in order for any business firm to earn money on their investments.
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