Define the following terms and explain how they are used to find the risk-free rate of return

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Define the following terms and explain how they are used to find the risk-free rate of return and the required rate of return for a given investment.
a. Real rate of return
b. Expected inflation premium
c. Risk premium for a given investment

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Fundamentals of Investing

ISBN: 978-0133075359

12th edition

Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk

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Question Posted: Apr 28, 2015 03:31 AM

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Define the following terms and explain how they are used to find the risk-free rate of return

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a The real rate of return is the return earned in a certain riskfree world It would equal the nomina...View the full answer

Fundamentals of Investing

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