The Risk-Free Rate of Return (RFR)equals

question 37

Multiple Choice

The risk-free rate of return (RFR) equals:

• A)3.5%
• B)the return on long-term Treasury bonds
• C)the average of the last 3 years' inflation rate
• D)the return on short-term Treasury bills

---

Definitions:

Coefficient

A coefficient is a numerical or constant quantity placed before and multiplying the variable in an algebraic expression (e.g., 4 in 4x).

Binomial

A polynomial with exactly two terms.

\(x^6\)

A mathematical expression representing a variable, x, raised to the power of 6.

\(y^8\)

Represents y raised to the power of eight, a mathematical expression indicating repeated multiplication of y by itself 7 more times.