The expected inflation rate in Finland is 2.8 percent while it is 3.2 percent in the U.S.A risk-free asset in the U.S.is yielding 4.9 percent.What approximate real rate of return should you expect on a risk-free Finnish security?
A) 1.2 percent
B) 1.7 percent
C) 2.1 percent
D) 2.5 percent
E) 2.8 percent
Correct Answer:
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