A stock index currently stands at 280. The risk-free interest rate is 10% per annum (with semiannual
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A stock index currently stands at 280. The risk-free interest rate is 10% per annum (with semiannual compounding) and the dividend yield on the index is 5% per annum (continuously compounded). Q6. The continuously compounded risk-free rate is closest to the following
| 9.35% | ||
| 4.77% | ||
| 10.11% | ||
| 9.76% |
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