E. analyzes the changes in inflation rates 7. The expected inflation rate in Norway is 1.0 percent while it is 3.0 percent in Canada. A risk-free asset in Canada is yielding 6.25 percent. What (approximate) real rate of return should you expect on a risk-free Norwegian security? A. 2.00 percent B. 3.25 percent C. 3.50 percent D. 4.25 percent E. 4.50 percent