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The Nominal Risk Free Rate of Interest Is a Function

Question 10

Multiple Choice

The nominal risk free rate of interest is a function of


A) The real risk free rate and the investment's variance.
B) The prime rate and the rate of inflation.
C) The T-bill rate plus the inflation rate.
D) The tax free rate plus the rate of inflation.
E) The real risk free rate and the rate of inflation.

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