Evaluate real risk free rate of return

Reference no: EM131441489

Question: You read in the wash street journal that 30 day T-bills are currently healing 5.5%. Your brother-in-law, a broker at safe and sound securities, has give me the following estimates of current interest rate premiums inflation rate equals 3.25% equity premium equals 0.6% maturity risk premium equals 1.8% default risk premium equals 2.15% on the basis of these data what is the real risk free rate of return?

Reference no: EM131441489

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