The Expected Inflation Rate in Finland Is 2% While It

question 39

Multiple Choice

The expected inflation rate in Finland is 2% while it is 4% in the U.S.A risk-free asset in the U.S.is yielding 5.5%.What real rate of return should you expect on a risk-free Norwegian security?

• A)2.0%
• B)2.5%
• C)3.0%
• D)3.5%
• E)4.0%

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Definitions:

Contingency Planning

The process of preparing for potential future events or emergencies to ensure effective responses.

Program Details

Specific information regarding the structure, components, and requirements of a particular program or initiative.

HR Forecasting

A strategic approach used by HR departments to anticipate future business demands for the workforce, ensuring the right number of people with the right skills are available when needed.

Reactive

Pertaining to a response after the fact, rather than proactively anticipating changes or challenges.