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30-day T-bills are currently yielding 3%. Inflation Premium = 1.5% Liquidity Premium = .6% Maturity risk premium = 1.8% Default risk premium = 2.15% Based
30-day T-bills are currently yielding 3%.
Inflation Premium = 1.5%
Liquidity Premium = .6%
Maturity risk premium = 1.8%
Default risk premium = 2.15%
Based on the above information, what is the real risk-free rate of return?
A. 2%
B. 1.5%
C. 3%
D. .5%
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