Suppose a Security with a Risk-Free Cash Flow of $1000

question 80

Multiple Choice

Suppose a security with a risk-free cash flow of $1000 in one year trades for $909 today.If there are no arbitrage opportunities,then the current risk-free interest rate is closest to:

• A)8%
• B)10%
• C)11%
• D)12%

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Definitions:

Superego Development

The phase in early child development where the sense of morality and conscience begins to form, influenced by parental and societal norms.

Psychoanalytic Stage

A phase in Freud's theory of psychosexual development, where the focus of pleasure and conflict shifts across different parts of the body throughout childhood.

Behaviorist Theory

A theory that focuses on observable behaviors and the ways in which they're learned rather than on internal processes like thoughts and emotions.

Gender Development

The process by which individuals develop their gender identity, roles, and expressions, influenced by biological, social, and cultural factors.