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If the risk - free rate of interest ( r f ) is 7 % , then you should be indifferent between receiving $ 5
If the riskfree rate of interest is then you should be indifferent between
receiving $ for sure in one year or which of the following?
a $ today
b $ today
c $ today
d $ today
e $ today
f None of the above
Stella deposits $ into a savings account today that pays interest at a rate of
per year. If she makes no additional deposits or withdrawals, what will the account
balance of Stella's savings account be in one year's time? choose the most appropriate
answer
a $
b $
c $
d $
You have just made an investment that you believe will generate a positive cash flow of
$ five years from now at What is the present value PV of this cash
flow today, assuming the interest rate is per year?
a $
b $
c $
d $
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