You read in The Wall Street Journal that 30-day T-bills are currently yielding 9 percent. Your brother-in-law, a broker at Kyoto Securities, has given you the following estimates of current interest rate premiums:

Inflation premium 5%

Liquidity premium 1%

Maturity risk premium 2%

Default risk premium 2%

Based on these data, the real risk-free rate of return is:

4 percent

2 percent

3 percent.

1 percent