The expected inflation rate in Finland is 1.35 percent while it is 3.45 percent in the U.S.A risk-free asset in the U.S.is yielding 4.95 percent.What real rate of return should you expect on a risk-free Finnish security?
A) 1.50%
B) .15%
C) 6.20%
D) 2.85%
E) 2.15%
Correct Answer:
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