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The 1-Year Risk-Free Rate of Return in Hobbiton Is 10

question 29

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The 1-year risk-free rate of return in Hobbiton is 10% and the 1-year risk-free rate of return in Gondor is 20%.If the real rate of return on a 1-year risk-free investment in Hobbiton is 0%,the what should be the expected rate of inflation in Gondor?


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