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The Market Portfolio of Common Stocks Earned 20

Question 21

Multiple Choice

The market portfolio of common stocks earned 20.4% last year. Treasury bills earned 5.3% on average last year. The average inflation rate was 2.5%. What was the real return on T-Bills?


A) 2.8%.
B) 5.3%
C) 7.8%
D) 3.9%

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