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The Risk-Free Rate Is

Question 1

Multiple Choice

The risk-free rate is:


A) another term for the dividend yield.
B) defined as the increase in the value of a share of stock over time.
C) the rate of return earned on an investment in a firm that you personally own.
D) defined as the total of the capital gains yield plus the dividend yield.
E) the rate of return on a riskless investment.

Correct Answer:

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