Which of the following statements is most correct?
A) The real risk-free rate of interest is the rate that is shown in the Wall Street Journal for the shortest term federal securities.
B) The real risk-free rate of interest is the rate that is shown in the Wall Street Journal for the longest term federal securities.
C) The real risk-free rate of interest is the rate that is shown in the Wall Street Journal for the shortest term federal securities,plus a forecast of the rate of inflation for the period of the securities.
D) The real risk-free rate of interest is the rate that is shown in the Wall Street Journal for the longest term federal securities,plus a forecast of the rate of inflation for the period of the securities.
Correct Answer:
Verified
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