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    Exam 2: Determinants of Interest Rates
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    An Investor Earned a 5 Percent Nominal Risk-Free Rate Over
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An Investor Earned a 5 Percent Nominal Risk-Free Rate Over

Question 52

Question 52

True/False

An investor earned a 5 percent nominal risk-free rate over the year. However,over the year,prices increased by 2 percent. The investor's real risk-free rate was less than his nominal rate of return.

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