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here are three securities, Security A, Security B, and Security C. Security C is equivalent to the portfolio of two units of Security A and
here are three securities, Security A, Security B, and Security C. Security C is equivalent to the portfolio of two units of Security A and three units of Security B. The risk free interest rate is X%.
Security A will provide you dollars of $660 amount today without any risk. Security B will provide you $1000 in two years without any risk.
Suppose the no-arbitrage price of Security C is $3800, then X% is closest to:
9.99
8.25
2.88
9.11
7.42
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