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Due to economic uncertainty, the required real rate of return has increased. This will most likely: A. Increase the default risk premium, inflation risk premium,
Due to economic uncertainty, the required real rate of return has increased. This will most likely:
A. Increase the default risk premium, inflation risk premium, and real rates
B. Increase nominal rates
C. Decrease nominal rates as long as inflation remains the sameIncorrect
D. Increase interest rate risk premium, real rates, and default risk premium
E. Increase real rates, interest rate risk premium, and decrease nominal rates
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