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In Q21 they said that the "risk-free interest rate is 4% and expected inflation is 3%". I would just assume that the risk free rate given is nominal already unless they explicitly state that it is the REAL risk free rate of interest, then you would have to calculate nominal.

You're correct though, CAPM always uses nominal rfr.



Edited 1 time(s). Last edit at Tuesday, June 2, 2009 at 02:34PM by Chuckrox8.

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