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Stacey has recently invested in a share with an expected nominal total return of 7% p.a. and a nominal dividend yield of 3% p.a. Inflation

Stacey has recently invested in a share with an expected nominal total return of 7% p.a. and a nominal dividend yield of 3% p.a. Inflation is expected to be 2% p.a. All rates are given as nominal effective rates.



What is the real expected income return on Stacey's investment?

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