The required real rate of return has increased

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Reference no: EM131613780

Due to economic uncertainty, the required real rate of return has increased. This will most likely:

-Increase real rates, interest rate risk premium, and decrease nominal rates

-Decrease nominal rates as long as inflation remains the same

-Increase the default risk premium, inflation risk premium, and real rates -Increase interest rate risk premium, real rates, and default risk premium

-Increase nominal rates

Reference no: EM131613780

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