Given the following information, select the investment with the higher real rate of return.

$>$ Investment A is a tax$-$advantage security with a tax$-$exempt yield of $8\%.$ Investment B is a taxable security with a pretax return of $10\%.$

$>$ The marginal tax rate is $20\%.$

$>$ The inflation rate is $2\%.$

Question options:

Question $11$ options:

$1.$

A and B have identical or the same real rate of return.

$2.$

A has a higher real rate of return versus B$.$

$3.$

B has a higher real rate of return versus A$.$

$4.$

A has a lower real rate of return versus B$.$