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Business, 23.11.2019 00:31 starwarsfan1975

Suppose 1-year t-bills currently yield 7.00% and the future inflation rate is expected to be constant at 6.00% per year. what is the real risk-free rate of return, r*? disregard any cross-product terms, i. e., if averaging is required, use the arithmetic average.

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Suppose 1-year t-bills currently yield 7.00% and the future inflation rate is expected to be constan...
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