Ai lun, a management trainee at a large new yorkdashbased bank, is trying to estimate the real rate of return expected by investors. he notes that the 3dashmonth tdashbill currently yields 3 percent, and consumer prices have been rising steadily at a 2% rate for several years. what should ai lun's estimate of the real rate be?

Ai Lun estimate that  real rate would be 1%

Explanation:

The Formula for the Real Rate of Return is

Real rate of return =Nominal interest rate - Inflation rate

In this case ,

Nominal interest rate =3%

Inflation rate  is given by the rising of the consumer prices =2%

So,  

Real rate of return =3% - 2%

Real rate of return=1%

answer; i believe the correct answer is (a) purchase of treasury stock;

answer; i believe the correct answer is (tall); ///good luck