If the return on U.S. Treasury bills is 7.02%, the risk premium is 2.32%, and the inflation rate is 4.16%, then the real rate of return is ____.   a. 7.02%   b. 6.48%   c. 4.70%   d. 2.86%

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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QUESTION 21

  1. If the return on U.S. Treasury bills is 7.02%, the risk premium is 2.32%, and the inflation rate is 4.16%, then the real rate of return is ____.
      a.
    7.02%
      b.
    6.48%
      c.
    4.70%
      d.
    2.86%
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