You read in The Wall Street Journal that 30-day T-bills currently are yielding 8 percent.Your brother-in-law, a broker at Kyoto Securities, has given you the following estimates of current interest rate premiums:
Based on these data, the real risk-free rate of return is
A) 0%
B) 1%
C) 2%
D) 3%
E) 4%
Correct Answer:
Verified
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