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Brian has recently invested in a share with an expected nominal total return of 9% p.a. and a nominal dividend yield of 5% p.a. Inflation

Brian has recently invested in a share with an expected nominal total return of 9% p.a. and a nominal dividend yield of 5% p.a. Inflation is expected to be 3% p.a. All rates are given as nominal effective rates. What is the real expected income return on Brians investment?

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