With Reference to the Data Above, What Is the Expected

question 55

Multiple Choice

With reference to the data above, what is the expected after-tax real rate of return on the one-year Treasury Bill for an investor in the 33 percent marginal tax bracket?

• A) 1.11%
• B) 3.13%
• C) 0.13%
• D) -1.11%

---

Definitions:

Exchange

A marketplace or platform where goods, services, or financial instruments are traded between parties.

Negotiable Instrument

A signed document that promises a specified sum of money to a specific person or entity and is transferable to others.

Substitute

A person or thing acting or serving in place of another, often used in employment or ingredient contexts.

Credit Device

A mechanism or tool, such as a credit card or loan, that extends credit to borrowers for purchases or cash advances.