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Assume the market has a required real rate of return of 3 percent. The market also hypothesizes that the inflation rate will be 2 percent.

Assume the market has a required real rate of return of 3 percent. The market also hypothesizes that the inflation rate will be 2 percent. The average market investor is in the 30 percent tax bracket. What will be the markets required rate of return on an otherwise risk free investment?

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