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Assume that last year the risk free rate equaled 1.75% and the Market Risk Premium equaled 8.9%. This year the inflation rate has increased 0.7%

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Assume that last year the risk free rate equaled 1.75% and the Market Risk Premium equaled 8.9%. This year the inflation rate has increased 0.7% over last year's expectations and the Market Risk Premium has stayed the same. What do you expect the return on the market to equal? 7.2% 10.7% 11,4% 6.5% 8.196 MacBook Air

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