ons Question 42 of 55 Suppose the real risk-free rate is 2.90% and the future rate of inflation is expected to be constant at 3.90%. What rate of return would you expect on a 1-year Treasury security, assuming the pure expectations theory is valid? Include cross-product terms, i.e., if averaging is required, use the geometric average. (Round your final answer to 2 decimal places.) a. 6.80% b. 3.01% c. 4.01 % d. 2.90% e. 6.91% Icon Key