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Use the following information for this and the following two questions. Please use the exact (multiplicative) formulation. The real rate is 4.8 percent and the
Use the following information for this and the following two questions. Please use the exact (multiplicative) formulation. The real rate is 4.8 percent and the nominal rate is 10.5 percent. What is the expected inflation premium? 7.48%6.24%5.44%2.24% QUESTION 6 If the risk premium is 2.5 percent, what is the pure rate? 7.80%6.24%5.44%2.24% QUESTION 7 What is the risk-free rate? 7.80%6.24%5.44%2.24% QUESTION 8 If the nominal rate of return on a risky security is 9 percent, and the risk-free rate is 4.9 percent, what is the risk premium? 7.48%4.10%3.91%2.24% Use the following information for this and the following two questions. Please use the exact (multiplicative) formulation. The real rate is 4.8 percent and the nominal rate is 10.5 percent. What is the expected inflation premium? 7.48%6.24%5.44%2.24% QUESTION 6 If the risk premium is 2.5 percent, what is the pure rate? 7.80%6.24%5.44%2.24% QUESTION 7 What is the risk-free rate? 7.80%6.24%5.44%2.24% QUESTION 8 If the nominal rate of return on a risky security is 9 percent, and the risk-free rate is 4.9 percent, what is the risk premium? 7.48%4.10%3.91%2.24%
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