Assume the real rate of return in the economy is 4.25 percent,the expected rate of inflation is 3.5 percent and the risk premium is 6.75 percent.Compute the risk free rate and required rate of return.

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The Answer of Assume the real rate of return in the economy is 4.25 percent,the expected rate of inflation is 3.5 percent and the risk premium is 6.75 percent.Compute the risk free rate and required rate of return.

Assume the Real Rate of Return in the Economy Is