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(Solved): Suppose That For The Coming Year Inflation Is Forecast At An Effective Annual Rate Of R = 5% And Int...

Suppose that for the coming year inflation is forecast at an effective annual rate of r = 5% and interest is forecast at effe

Suppose that for the coming year inflation is forecast at an effective annual rate of r = 5% and interest is forecast at effective annual rate i=8%. Find the real rate of return. Round your answer to 3 decimal places.

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