If the expected inflation rate is 3.45%, the realized real rate of return is 3.80%, and the actual inflation rate is 2.15%, what is the required real rate of return? a. 1.45% b. 2.50% C. 5.60% d. 2.35%

If the expected inflation rate is 3.45%, the realized real rate of return is 3.80%, and the actual inflation rate is 2.15%, what is the required real rate of return? a. 1.45% b. 2.50% C. 5.60% d. 2.35%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

If the expected inflation rate is 3.45%, the realized real rate of return is 3.80%, and the actual
inflation rate is 2.15%, what is the required real rate of return?
а. 1.45%
b. 2.50%
С.
5.60%
d. 2.35%

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