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Suppose the real rate is 8 percent and the inflation rate is 1.6 percent. What rate would you expect to see on a Treasury bill?

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Suppose the real rate is 8 percent and the inflation rate is 1.6 percent. What rate would you expect to see on a Treasury bill? O11.19% 9.73% 8.76% 8.27 % 10.70% QUESTION 2 If expected return is less than required return on an asset, rational investors will A sell the asset, which will drive the price up and cause the expected return to reach the level of the required return O B. sell the asset, which will drive the price down and cause the expected return to reach the level of the required return buy the asset, since price is expected to increase Dbuy the asset, which will drive the price up and cause expected return to reach the level of the required return

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