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the answer is not 7.50. The pure rate of interest is 2.5 percent and the inflation premium is 5 percent, yf you require a risk

the answer is not 7.50.

The pure rate of interest is 2.5 percent and the inflation premium is 5 percent, yf you require a risk premium of 3.5 percent, what is the risk-free rate? Use exact formulation. (Hint: Set risk premium equalto zerol) 7.50% 8.75% 7.62% 6.00% 6.09%

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