Question: If investors require a 5% nominal return and the expected inflation rate is 2%, what is the expected real return? Select one: a. 3.88% b.

If investors require a 5% nominal return and the expected inflation rate is 2%, what is the expected real return?

Select one: a. 3.88% b. 3.04% c. 2.94% d. 2.21% e. 3.00%

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