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The expected rate of inflation is 1.5%, the yield on risk-free Treasury bills is 2.5%, the yield on long-term Treasury bonds is 4.5%, and the
The expected rate of inflation is 1.5%, the yield on risk-free Treasury bills is 2.5%, the yield on long-term Treasury bonds is 4.5%, and the expected return on the Total Stock Market Index is 7.0%. What is the expected Total Market risk premium for liquid investments?
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