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    Exam 5: Introduction to Risk,return,and the Historical Record
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    If the Annual Real Rate of Interest Is 3
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If the Annual Real Rate of Interest Is 3

Question 14

Question 14

Multiple Choice

If the annual real rate of interest is 3.5% and the expected inflation rate is 2.5%,the nominal rate of interest would be approximately


A) 3.5%.
B) 2.5%.
C) 1%.
D) 6.8%.
E) none of the above.

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