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suppose the real risk-free rate is 2.50 percentage and the future rate inflation is expected to be constant 7.00 percentage. What rate of return would

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suppose the real risk-free rate is 2.50 percentage and the future rate inflation is expected to be constant 7.00 percentage. What rate of return would you expect on as-year Treasury security, assuming the pure expectations theory is valid? Disregard cross-product terms, i.e., if averaging is required, use the arithmetic average. 11.59 percentage 7, 41 percentage 7, 70 percentage 5.46 percentage 9.50 percentage

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