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
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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%
Transcribed Image Text: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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