The Nominal Risk-Free Rate of Interest Is a Function of the

question 71

Multiple Choice

The nominal risk-free rate of interest is a function of the

• A) real risk-free rate and the investment's variance.
• B) prime rate and the rate of inflation.
• C) T-bill rate plus the inflation rate.
• D) tax free rate plus the rate of inflation.
• E) real risk-free rate and the rate of inflation.

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