Question: Real and nominal rates of interest Nick is a product manager in an investment 1 P61 banking firm. His supervisor asked him to price an

Real and nominal rates of interest Nick is a product manager in an investment 1 P61 banking firm. His supervisor asked him to price an investment product, so Nick conducted some research and the market information he obtained is as follows: The rate of return of 3-month Treasury bills is 6%, the expected inflation rate is and the risk premium of an investment product with similar characteristics in the market is 5%. What should be the nominal rate of return of Nick\'s investment product?

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