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You are investigating an investment offering a 10.5 percent total return for the coming year. Being a savvy investor, you run some numbers and come

You are investigating an investment offering a 10.5 percent total return for the coming year. Being a savvy investor, you run some numbers and come to believe the total real return on this investment will be only 4.5 percent. What is your estimate of the inflation rate for next year that would drive this calculation of the real return?

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