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    Corporate Finance Study Set 5
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    Exam 3: Arbitrage and Financial Decision Making
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    If the Risk-Free Rate of Interest (R<sub>f</sub>)is 6%,then You Should
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If the Risk-Free Rate of Interest (Rf)is 6%,then You Should

Question 10

Question 10

Multiple Choice

If the risk-free rate of interest (rf) is 6%,then you should be indifferent between receiving $250 today or


A) $235.85 in one year.
B) $250.00 in one year.
C) $265.00 in one year.
D) none of the above

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