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If the Expected Rate of Inflation Was 3% and the Actual

Question 25

Multiple Choice

If the expected rate of inflation was 3% and the actual rate was 6.2%; the systematic response coefficient from inflation, bI , would result in a change in any security return of ___ bI .


A) 9.2%
B) 3.2%
C) -3.2%
D) 3.0%
E) 6.2%

Correct Answer:

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