Suppose 1-Year T-Bills Currently Yield 7

question 53

Multiple Choice

Suppose 1-year T-bills currently yield 7.00% and the future inflation rate is expected to be constant at 2.00% per year.What is the real risk-free rate of return,r*? The cross-product term should be considered ,i.e. ,if averaging is required,use the geometric average.(Round your final answer to 2 decimal places. )

• A) 4.51%
• B) 4.85%
• C) 4.90%
• D) 3.87%
• E) 3.77%

Recognize and categorize the different types of risks associated with purchase decisions.

Comprehend how no-action conditions and default choices influence consumer decision-making.

Understand the psychological effects of limited availability and promotional tactics on consumer behavior.

Recognize the importance of quick and effective complaint resolution to minimize negative consumer feedback.

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Definitions:

Tagging

The act of labeling or identifying content on digital platforms for reasons such as categorization, acknowledgment, or Search Engine Optimization.

Visual Alerts

Notifications through visual cues like symbols, lights, or messages, designed to attract attention.

Multilingual Audiences

Groups of people that speak more than one language, requiring communications to be adapted for language diversity.

Understanding

The ability to grasp the meaning, significance, or nature of something.