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If the real interest rate is estimated to be 2.5%, the annualized rate of inflation is estimated to be 1.9%, and the risk premium for
If the real interest rate is estimated to be 2.5%, the annualized rate of inflation is estimated to be 1.9%, and the risk premium for the market is estimated to be 4.0%, what is the required return for the market? Select one: a. 8.4% b. 6.5% c. 4% d. It depends on the nominal rate of interest.
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