If the Risk-Free Rate Is 6

question 31

Multiple Choice

If the risk-free rate is 6.5 percent compounded annually, what is the continuously compounded risk-free rate equal to?

• A) 1/ln1.065
• B) 6.10%
• C) ln1.065
• D) 6.24%
• E) e¹.⁰⁶⁵ − 1

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Definitions:

Partnership Property

Assets purchased or acquired for the purpose of the partnership business, jointly owned by all partners according to the partnership agreement.

Legal Position

The stance or argument taken on a legal issue, often based on laws, precedents, and principles.

Partnership

A legal form of business operation between two or more individuals who share management and profits.

Partner

An individual who shares ownership of a business or an endeavor with one or more persons, often sharing in profits and responsibilities.