3 years ago

Need help now, please

Mathematics

1 answer:

fiasKO [112]3 years ago

6 0

D is the answer for this question

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Answer:

1:4

2:8

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Step-by-step explanation:

1:4
2:8 , 1:4
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Ai Lun, a management trainee at a large New York based bank, is trying to estimate the real rate of return expected by investors

salantis [7]

Answer:

option B

Step-by-step explanation:

given,

3-month T-bill currently yields = 3%

customer price have been rising = 2% rate

Ai Lun's estimate of the real rate = ?

real rate return

= $\dfrac{1 + risk\ free\ rate}{1 +inflation\ rate} - 1$

= $\dfrac{1 + 0.03}{1 +0.02} - 1$

= $\dfrac{1.03}{1 .02} - 1$

= $1.0098 - 1$

= 0.0098

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hence, the correct answer is option B

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Step-by-step explanation:

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