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Bas_tet [7]
3 years ago
12

Anybody have any question that needs to be answered

SAT
1 answer:
n200080 [17]3 years ago
6 0

Nope

I don’t sorry lol

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The real risk free rate is 3%, inflation is expected to be 2% this year, and the maturity risk premium is zero. Ignoring any cro
Aleonysh [2.5K]

<u>The equilibrium rate of return on a 1 year T-bond is 5%</u>

<u />

<h3>Equilibrium rate</h3>

This is the interest rate at which the demand meet the supply at a particular point.

<h3>Equilibrium rate of return</h3>

This is the sum of dividend yield plus the rate of capital gains.

we can also say that the equilibrium rate for a 1 year T-bond in this case is the sum of the real risk free rate and the expected inflation.

Data

  • Real risk free rate = 3%
  • Expected inflation = 2%

Hence, the equilibrium rate of return will be 3% + 2% = 5%.

From the above, the equilibrium rate of return is 5%

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F(x) = x2 + 1 g(x) = 5 – x<br><br> (f + g)(x) =
klio [65]

<em>A function f (x) and g (x) then:</em>

<em>(f + g) (x) = x² - x + 6</em>

<em>Further explanation</em>

Like the number operations we do in real numbers, operations such as addition, installation, division or multiplication can also be done on two functions.

Suppose a function f (x) and g (x) then:

(f + g) (x) = f (x) + g (x)

(f + g) (x) is a new function of the sum of f (x) and g (x)

Likewise with other function operations:

(f-g) (x) = f (x) - g (x)

(fg) (x) = f (x) x g (x)

(f / g) (x) = f (x) / g (x)

In addition to the above operations we can combine two functions using the function composition with the symbol o

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Known on the question

f (x) = x² + 1

g (x) = 5 x

Summing the two functions f (x) and g (x):

(f + g) (x) = f (x) + g (x)

(f + g) (x) = x² + 1 + 5 - x

(f + g) (x) = x² - x + 6

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F (x) and g (x) functions

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