The Most Commonly Used Risk-Free Rate by Industry Practitioners Is

question 13

Multiple Choice

The most commonly used risk-free rate by industry practitioners is the _____.

• A)federal funds rate
• B)prime rate
• C)EURIBOR
• D)LIBOR

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Definitions:

Pharmaceutical

Pertaining to the research, development, and manufacture of drugs and medications.

Stock

A claim to partial ownership in a firm.

Net Exports

The value of a country's total exports minus its total imports, representing the net contribution of the export sector to a country's GDP.

Real Interest Rates

The interest rate adjusted for inflation, representing the true cost of borrowing and the real yield to an investor.