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The real risk-free rate is 1.2% and expected inflation is 2.6%. The expected annual fixed income return for a one year U.S. Treasury note is:

The real risk-free rate is 1.2% and expected inflation is 2.6%. The expected annual fixed income return for a one year U.S. Treasury note is:

A. 2.5%

B. 2.2%

C. 3.8%

D. 3.2%

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