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1. You received 3% APR interest rate from a CD account of Bank of America. By check the internet, you also noticed that the inflation
1. You received 3% APR interest rate from a CD account of Bank of America. By check the internet, you also noticed that the inflation rate was 2% for the year. 1) What is the real interest rate you got? What does real interest rate measure? 2) Suppose you got a 12% APR return rate from your stock investments, how much is the risk premium on the stock investments
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Entrepreneurial Finance
Authors: Gary E. Gibbons, Robert D. Hisrich, Carlos Marques DaSilva
1st Edition
