If expected inflation for the next year is 5% and you, as an investor, require a real growth in purchasing power of 7%, which of the following assets would you be willing to invest in?

Hint: Use the exact method

		Small-cap stock that has a 16% return
		None of the Above
		Large-cap stock that has a 12.25% return
		Corporate Bond that has a 12% return
		US Treasury that has an 8% return