Question
You require a risk premium of 3.5 percent on an investment in a company. The pure rate of interest in the market is 3.0 percent
You require a risk premium of 3.5 percent on an investment in a company. The pure rate of interest in the market is 3.0 percent and the inflation premium is 3 percent.US Treasury bills are risk free. What should be the yield of the US Treasury bills? Use multiplicative form.
A.5.83%
B.6.09%
C.5.58%
D.5.32%
E.5.06%
F.6.35%
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International Financial Reporting Standards An Introduction
Authors: Belverd Needles, Marian Powers
2nd edition
053847680X, 978-1111793234, 1111793239, 978-0538476805
