The Two Elements That Make Up the Risk-Free Rate of Return

question 96

Multiple Choice

The two elements that make up the risk-free rate of return are

• A)the supply of funds and the demand for funds
• B)the yield on 90-day Treasury bills plus an inflation premium
• C)the real rate of return plus an inflation premium
• D)the required return plus a risk premium

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Definitions:

Unknown Area

A topic, field, or subject matter that is not known or familiar to an individual or group.

Blind Area

in the context of personal development refers to aspects of oneself that others are aware of but the individual is not.

Quality of Feedback

The effectiveness and usefulness of information or advice given to someone to improve their performance or understanding.

Enhanced Rumination

The process of continuously thinking about the same thoughts, which are often negative or sad, leading to a deeper state of negative thinking.