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Question 12 of 24 Suppose the real risk-free rate is 3.00%, the average expected future inflation rate is 5-90%, and a rnaturty nsk premium 0
Question 12 of 24 Suppose the real risk-free rate is 3.00%, the average expected future inflation rate is 5-90%, and a rnaturty nsk premium 0 0 10% per year to maturity applies, i e, MRP 0.10%(t), where t is the number of years to maturity, what rate of return NOT valid? Disregard cross-product terms, i.e., if averaging is required, use the arithmetic average 0 a. 9.27% woul vou espect m n year Treasury security, assuming the pure expectations theory is b. 7.29% . 9.00% d, 8.91% O e. 10.35% 7:26 PM 10/10/20 ^
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