What is the real risk-free rate of return

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30-day T-bills are currently yielding 3%.

Inflation Premium = 1.5%

Liquidity Premium = .6%

Maturity risk premium = 1.8%

Default risk premium = 2.15%

Based on the above information, what is the real risk-free rate of return?

A. 2%

B. 1.5%

C. 3%

D. .5%

Reference no: EM132589475

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