Question 1 Not yet answered Marked out of 1.00 P Flag question The nominal risk free rate of interest is a function of: Select one: a. The prime rate and the rate of inflation. The T-bill rate plus the inflation rate. b. The tax free rate plus the rate of inflation. c. The real risk free rate and the investment's variance. d. The real risk free rate and the rate If the annual real rate of interest is 3.5% and the expected inflation rate is 3.5%, the nominal rate of interest would be approximately Select one: a. 0%. b. 7%. c. 12.25%. d. 3.5%