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    Exam 5: Risk, Return, and the Historical Record
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    If the Annual Real Rate of Interest Is 4% and the Expected
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If the Annual Real Rate of Interest Is 4% and the Expected

Question 42

Question 42

Multiple Choice

If the annual real rate of interest is 4% and the expected inflation rate is 3%, the nominal rate of interest would be approximately


A) 4%.
B) 3%.
C) 1%.
D) 5%.
E) None of the options

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