Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. the risk-free rate of return is equal to the real

The risk-free rate of return is equal to the real rate plus the inflation premium....

70.2K

Verified Solution

Question

Finance

  • The risk-free rate of return is equal to the real rate plus the inflation premium. True or False? 69._________

  • Changes in the inflation rate have a direct and pronounced effect on market interest rates. True or False? 70.____________

  • The risk free rate of return considers the expected rate of inflation. True or False? 71.________

  • Margin trading mitigates risk. True or False? 72._________

An investor needs $750,000, 20 years from now. How much does the investor need to invest today assuming an expected rate of return of:

  • 4% 73.$__________ (be exact)

  • 8% 74.$__________ (be exact)

  • Total Risk = 75. _________________________+ 76. _________________________

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Advance Math
1.2K views

. Three Dice of a Kind Consider the following game: You roll six 6-sided dice d1,…,d6 and...

Advance Math
1.2K views

Course: Math Modeling A tank contains 8 L (liters) of water in which is dissolved 32...

Medical Sciences
1.2K views

1. A deficiency in what hormone could cause our immune system to weaken 2. What would be...

Biology
1.2K views

Which of the following is small circular piece of DNA independent of the bacterial chromosome...

Physics
1.2K views

The potential difference between the points A and B in the following circuit shown in...

Algebra
1.2K views

2 Carefully sketch the set of points in the complex plane defined by z 2...

Accounting
1.2K views

Kelly Company's most recent contribution format income statement is shown below: Sales (60,000 Units) total:$600,000...

Accounting
1.2K views

View Policies Current Attempt in Progress On April 1,2025, Bridgeport Company sold 33,300 of...

Accounting
1.2K views

Can you please describe in detail how total variable costs and unit variable costs behave...

Accounting
1.2K views

Mccabe Corporation uses the weighted-average method in its process costing. The following data pertain to...

Accounting
1.2K views

Milot Corporation is an oil well service company that measures its output by the number...

Finance
1.2K views

a) Suppose you invest in an account paying 4.2% compound interest monthly. What is the...