Questionassume the real rate of return in the economy is, Ask an Expert

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Question:

Assume the real rate of return in the economy is 4.25 percent, the expected rate of inflation is 3.5 percent and the risk premium is 6.75 percent.

Required:

Compute the risk free rate and required rate of return.

Note: Be sure to show how you arrived at your answer.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91149575

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