The Nominal Risk Free Rate of Interest Is a Function

question 15

Multiple Choice

The nominal risk free rate of interest is a function of

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

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