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What was the risk-free rate of return

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Reference no: EM132769070

Problem 1: Over the past 10 years, large-company shares have returned 11.2%. The risk premium on these shares was 4.8% and the inflation rate was 3.7%. What was the risk-free rate of return?

Select one:

a. 2.7%
b. 6.4%
c. 7.5%
d. 8.5%

Reference no: EM132769070

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