Question: 4 points QUESTION 7 If you are promised a nominal return of 12% on a 1-year investment, and you expect the rate of inflation to

4 points QUESTION 7 If you are promised a nominal return of 12% on a 1-year investment, and you expect the rate of inflation to be 3% what real rate do you expect to com? 0 5.48 O 8.74% O 9.00% 12.00%

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If you are promised a nominal return of 12% on a 1-year investment, and you expect the rate of inflation to be 3%, what real rate do you expect to earn? A) 5.48% B) 9% C) 8.74% D) 12%

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