Answer:
B. 11%
Step-by-step explanation:
Using the formula
Real rate of return = nominal rate - inflation rate
Note that the nominal rate of a business is the return on investment in a particular year.
Therefore if Josephine earned a 15% return on her investments last year, her nominal rate is also 15%
Since the inflation rate is 4%
Rate of return = 15%-4%
Rate of return = 11%
