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If you are looking for a 4% real return (inflation-free interest) on your investment, would you be interested in an investment opportunity that produces a 10% return on investment (market interest rate) if the inflation rate is 6%? it says that the answer is interest rate=4% and the general inflation rate f= 6% and the interest rate is 10.24%. Can someone please explain this to me?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91776717

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