Nominal and real returns an investment offers a 4 total, Financial Management

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Nominal and real returns an investment offers a 4 total

Nominal and Real Returns. An investment offers a 4% total return over the coming year. Crystal Prediction thinks the total real return on this investment will be only 2.25%. Given this, one can infer that Crystal believes the inflation rate will be ______% over the next year. (Do not ignore the cross-product terms).

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Financial Management: Nominal and real returns an investment offers a 4 total

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