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The interest rate theories that we studied are about the determination of the risk - free rate of interest, which is a component of all
The interest rate theories that we studied are about the determination of the riskfree rate of interest, which is a component of all interest rates. What is the closest realworld approximation to this riskfree rate of return?
The market interest rate on US government bonds.
The stock market return.
The interest rate on high quality corporate bonds.
The LIBOR rate.
The interest rate on medium quality corporate bonds.
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