Given a real rate of interest of 3%, an expected inflation premium of 1.5%, and risk premiums

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Given a real rate of interest of 3%, an expected inflation premium of 1.5%, and risk premiums for investments A and B of 5% and 6.5%, respectively, find the following:
a. The risk-free rate of return, rf
b. The required returns for investments A and B

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Fundamentals Of Investing

ISBN: 9780135175217

14th Edition

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

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