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What should be nominal rate of return of nick investment

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Point 1: Nick is a product manager in an investment baking firms. His supervisor asked him to price an investemtn product, so Nick conducted some reasearch and the market information he obtained is as follows: The rate of return of 3 month Treasury bills is 6, the expected inflation rate is 3%, and the risk premium of an investment product with similar characteristics in the market is 5%.

Question 1: What should be the nominal rate of return of Nick's investment product?

Reference no: EM132497390

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