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To the nearest whole number, what is the required return for an investment when the real rate of return is 3 percent, the expected inflation

To the nearest whole number, what is the required return for an investment when the real rate of return is 3 percent, the expected inflation premium is 2 percent, and the risk premium is 2 percent?

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Part 1

A.

2 percent

B.

4 percent

C.

5 percent

D.

7 percent

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