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Suppose the real risk-free rate is 3.75% and the future rate of inflation is expected to be constant at 3.90%. What rate of return
Suppose the real risk-free rate is 3.75% and the future rate of inflation is expected to be constant at 3.90%. What rate of return would you expec expectations theory is valid? Include cross-product terms, i.e., if averaging is required, use the geometric average. (Round your final answer to 2 a. 4.05% b. 7.65% Oc.7.80% O d. 3.90% e. 3.75%
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