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The Expected Inflation Rate in Finland Is 3

Question 65

Multiple Choice

The expected inflation rate in Finland is 3.67 percent while it is 2.45 percent in the United States.A risk-free asset in the United States is yielding 3.21 percent.What real rate of return should you expect on a risk-free Finnish security?


A) 2) 91%
B) 4) 15%
C) 6) 20%
D) 4) 43%
E) 3) 15%

Correct Answer:

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