Question: 16)Find the Real rate of return Using the basic interest rate model discussed in class. Nominal rate of return on risk free securities is 9.2%.

 16)Find the "Real rate of return" Using the basic interest rate

16)Find the "Real rate of return" Using the basic interest rate model discussed in class. Nominal rate of return on risk free securities is 9.2%. Inflation risk premium is 3.8%. What is the "real return"? d)5.2% b)5.4% c) 5.6% A) 4.9%

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