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P6-1 (similar to) Question Help Interest rate fundamentals: The real rate of retum Carl Foster a trainee at an investment banking firm is trying to
P6-1 (similar to) Question Help Interest rate fundamentals: The real rate of retum Carl Foster a trainee at an investment banking firm is trying to get an idea of what real rate of return investors are expecting in today's marketplace. He has looked up the rate paid on 3-month US Treasury bits and found it to be 54% He has decided to use the recent rate of change in the Consumer Price Index* a proxy for the inflationary expectations of investors that annualized rate now stands at 19% On the basis of the information that Coil has collected, what estimate can ho make of the real rate of retur? The estimate of the real rate of return in Round to one deceat place) +
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