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If the Risk-Free Rate of Interest (R_f)is 5%, Then You

Question 25

Multiple Choice

If the risk-free rate of interest (r_f) is 5%, then you should be indifferent between receiving $300 today or

A) $315.00 in one year.
B) $350.00 in one year.
C) $285.00 in one year.
D) none of the above.

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