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A person invested ₹5,00,000 in a fund. At the end of the year, the value of the fund is ₹6,50,000. The nominal rate of return, if the market price is the same at the end of the year is:

Solution

✅ Correct Option: 4

With no change in market price, the return is entirely the gain in value: 650000−500000500000=0.30\frac{650000-500000}{500000}=0.30, i.e. 30%.

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