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The expected inflation rate in Finland is 2 percent while it is 4 percent in the U.S. A risk-free asset in the U.S. is yielding

The expected inflation rate in Finland is 2 percent while it is 4 percent in the U.S. A risk-free asset in the U.S. is yielding 5.5 percent. What nominal rate of return should you expect on a risk-free Finnish security?

3.0%

4.0%

2.0%

3.5%

2.5%

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