PEEESSSEEE HELL M 1. Define the annual rate of return on an investment?

b. If you earn $40 a year on a $500 investment, what is the annual rate of return?

c. What is the relationship between the expected rate of return and the investment risk?

d. If the annual nominal rate of return on an investment is 10 percent and the annual rate of inflation is 3 percent, what is the real rate of return?

e. True, false, or uncertain, and why? "The Internet is the future of our economy. The prices of Internet stocks are bound to go up."

f. True, false, or uncertain, and why? "This investment pays 30 percent a year and is perfectly safe. I put my mother's money into this investment."