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Suppose that the inflation rate is expected to be 3% in the near future. Using the historical data provided in this chapter, what would be

Suppose that the inflation rate is expected to be 3% in the near future. Using the historical data provided in this chapter, what would be your predictions for:

a. The T-bill rate?

b. The expected rate of return on the Big/Value portfolio?

c. The risk premium on the stock market?

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