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Mathematics, 22.10.2019 19:00 fowers7187
Suppose the real risk-free rate is 2.50% and the future rate of inflation is expected to be constant at 7.00%. what rate of return would you expect on a 5-year treasury security, assuming the pure expectations theory is valid? disregard cross-product terms, i. e., if averaging is required, use the arithmetic average.
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Suppose the real risk-free rate is 2.50% and the future rate of inflation is expected to be constant...
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