Suppose 1 -year T-bills currently yield 7.00 % and the future inflation rate is expected to be constant at 4.70% per year. What is the real risk free rate of return 1.84% 2.76 % 2.46 % 1.96 % 2.30%
Suppose 1 -year T-bills currently yield 7.00 % and the future inflation rate is expected to be constant at 4.70% per year. What is the real risk free rate of return 1.84% 2.76 % 2.46 % 1.96 % 2.30%
Chapter7: Valuation Of Stocks And Corporations
Section7.6: Valuing Nonconstant Growth Stocks
Problem 3ST
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Suppose 1 -year T-bills currently yield 7.00 % and the future inflation rate is expected to be constant at 4.70% per year. What is the real risk free rate of return
1.84%
2.76 %
2.46 %
1.96 %
2.30%
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