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If an investor requires a growth in purchasing power of 7% and inflation for the next year is 5%, which of the following investment choices

If an investor requires a growth in purchasing power of 7% and inflation for the next year is 5%, which of the following investment choices have the smallest acceptable return?

A stock with a 13% return

A 30-year T-Bond that has a 16% return

A bond with a 12% return

A hedge fund with an 8% return

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