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Your friend Matt tells you that he expects the REAL return on GE stock to...

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Finance

Your friend Matt tells you that he expects the REAL return on GE stock to be 5% this year. He also tells you that he expects inflation to be 4% this year. Given this information, what is the expected return on GE in nominal terms? [hint: do not approximate, use the actual formula to move from real to nominal]

a. -1%

b. 5%

c. 4%

d. 8.95%

e. 9,2%

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