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Use the table to answer the question below. Market Price Cash Flow in One Year Poor Economy Good Economy Security Today A 200 840 0
Use the table to answer the question below. Market Price Cash Flow in One Year Poor Economy Good Economy Security Today A 200 840 0 B 600 0 840 ??? 840 4200 Based upon the information provided about securities A, B, and C, the risk-free rate of interest is closest to: (Hint: One can construct a risk-free asset by forming a portfolio of A and B). 4% A. 5% B. 8% 10% OD
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