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Given a real rate of interest of 1.9%, an expected inflation premium of 4.8%, and risk premiums for investments A and B of 5.6% and
Given a real rate of interest of 1.9%, an expected inflation premium of 4.8%, and risk premiums for investments A and B of 5.6% and 8.1% respectively, find the following: a. The risk-free rate of return, rf b. The required returns for investments A and B a. The risk-free rate of return is \%. (Round to one decimal place.)
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