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Given the following, what is the risk-free rate? Risk premium: 2% Required rate of return: 5% Real rate of return: 2% Inflation premium: 1% Select

Given the following, what is the risk-free rate?

  • Risk premium: 2%
  • Required rate of return: 5%
  • Real rate of return: 2%
  • Inflation premium: 1%

Select one:

a.

5%

b.

4%

c.

3%

d.

2%

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