Use the Information for the Question(s)below

question 61

Multiple Choice

Use the information for the question(s) below.
An exchange traded fund (ETF) is a security that represents a portfolio of individual stocks.Consider an ETF for which each share represents a portfolio of two shares of International Business Machines (IBM) ,three shares of Merck (MRK) ,and three shares of Citigroup Inc.(C) .Suppose the current market price of each individual stock are shown below:
-Suppose a security with a risk-free cash flow of $1000 one year from now trades for $909 today.If there are no arbitrage opportunities,then the current risk-free interest rate is closest to:

• A)8%.
• B)10%.
• C)11%.
• D)12%.

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Definitions:

Globalization

The process of interaction and integration among people, companies, and governments worldwide, often driven by international trade and investment and aided by informational technology.

Diversity Initiatives

Programs and policies designed to promote and support inclusivity and diversity within workplaces or communities.

Canadian Charter

Short for the Canadian Charter of Rights and Freedoms, a bill of rights entrenched in the Constitution of Canada.

Constitution Act Of 1982

A significant update to the Canadian constitution that included the Charter of Rights and Freedoms, fundamentally shaping Canadian law.