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    sparcus Posts: 3, Reputation: 1
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    #1

    Jun 15, 2013, 04:13 PM
    Finance
    Assume that the real risk-free rate is 4 percent and the maturity risk premium is zero. If the nominal rate of interest on one-year bonds is 11 percent, and on comparable-risk two-year bonds it is 13 percent, what is the one-year interest rate that is expected for Year 2? What inflation rate is expected during Year 2?
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    sparcus Posts: 3, Reputation: 1
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    #2

    Jun 15, 2013, 04:15 PM
    finance
    . Suppose that rRF= 5% and rM= 12%. What is the appropriate required rate of return for a stock that has a beta coefficient equal to 1.5?

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