Use the Table for the Question(s)below

question 46

Multiple Choice

Use the table for the question(s) below.
-If the risk-free rate of interest is 7.5%,then the value of security "B" is closest to:

• A)$91.00.
• B)$92.50.
• C)$93.00.
• D)$100.00.

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Definitions:

Consumption Bundle

A set of goods or services that an individual considers purchasing, given their income and the prices of those goods/services.

Indifference Curves

Graphs representing different combinations of goods that give a consumer equal levels of satisfaction, thereby indicating their preferences.

Bundle

A combination of different goods or services that are sold together as a single package.

Indifference Curves

Graphical representations in microeconomics that show combinations of two goods among which a consumer is indifferent, meaning they have no preference for one combination over the other.