What was the average nominal risk-free rate of return

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Assume large-company stocks returned 12.8 percent on average over the past 75 years. The risk premium on these stocks was 7.9 percent and the inflation rate was 3.6 percent. What was the average nominal risk-free rate of return for those 75 years?

a. 4.90 %

b. 9.20%

c. 4.26%

d. 8.33%

e. 8.60%

Reference no: EM13928167

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