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The common stock of Tyler and Moore is expected to earn a 12.5 percent return next year. This stock has a risk premium of 8
The common stock of Tyler and Moore is expected to earn a 12.5 percent return next year. This stock has a risk premium of 8 percent. The inflation rate is projected at 3.5 percent. What is the expected rate of return on U.S. Treasury bills next year?
| A. | 4.0 percent | |
| B. | 4.2 percent | |
| C. | 4.3 percent | |
| D. | 4.5 percent | |
| E. | 4.8 percent |
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