Answer: d.
15/24 is not an equivalent fraction of 3/5.
Answer:
real risk-free rate = 2.7 %
Step-by-step explanation:
Given data
Treasury bonds yield r = 5%
time = 5 year
(IP) = 1.9%
MRP = 0.4%
to find out
real risk-free rate r*
solution
we will find real risk-free rate r* by the given formula that is
Treasury bonds yield = real risk-free rate + IP + MRP + default risk premium + liquidity premium
so here default risk premium and liquidity premium both are zero
put all the other value we get real risk-free rate
real risk-free rate = 5% - 1.9 % - 0.4%
real risk-free rate = 2.7 %
Its A!
if you plug 4 and -7, the equation works
This equation is subtracting 1/4 at a time. The next three numbers would be 3, 2 3/4, and 2 1/2.
College is the correct answer