A financial analyst has the following data:
Inflation premium (IP) = 5.25%
Real, risk-free rate, r* = 3.2%
According to this information, what is the nominal risk-free rate?
A) 4.75%
B) 5.09%
C) 6.25%
D) 8.45%
E) 7.50%
Correct Answer:
Verified
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