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Which of the following statements is FALSE? a. A risk-free cash flow received in two years should be discounted at the two-year interest rate. b.

Which of the following statements is FALSE? a. A risk-free cash flow received in two years should be discounted at the two-year interest rate. b. The plot of the relationship between the investment risk and the interest rate is called the yield curve. c. The nominal interest rate does not represent the increase in purchasing power that will result from investing. d. Each of the economic recessions was preceded by a period with an inverted yield curve.

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