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The real risk free rate of interest is 3 % (k*). Inflation is expected to be 4% next year, 5 % the following year and
The real risk free rate of interest is 3 % (k*). Inflation is expected to be 4% next year, 5 % the following year and 6% the year after. What should the ROR (k) be for a 3-year risk free security?
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