Answer:
The real risk free rate is 3.8%
The exact risk-free rate is 3.68%
Explanation:
The interest rate on the Treasury bills is usually a combination of real risk free rate and inflation rate to compensate investors for average inflation in the economy during the instrument lifetime which equals nominal risk-free rate.
nominal risk-free rate = real risk-free rate+inflation rate
nominal risk-free rate=7%
inflation rate=3.2%
real risk-free rate=7%-3.2%
real risk-free rate=3.8%
The exact real risk-free rate can be computed thus:
nominal rate+1=(real risk-free rate+1)*(inflation rate+1)
real risk-free rate=(nominal rate+1)/(inflation rate+1)-1
real risk free rate=(1.07/1.032)-1
real risk-free rate=0.036821705
real risk-free rate=3.68%
Answer: sunk costs don't increase as driving increases.
Explanation: sunk costs are irrelevant costs because they have already occured in the past and cannot be avoided. Sunk costs thus do not differ between alternatives, and are unavoidable. The calculation for insurance and other sunk costs are likely not based on the amount of rides the Uber picks up, but rather calculated at a constant rate. So regardless of whether or not the rider pays more or less than the $.50 on the insurance, this will not have any effect on the insurance that is constant and has likely already been paid out.
Like cars, bikes, airplanes, trains, public transport?
Answer:
Proofread for punctuation errors (it's a must!!), Jot down reasons that explain the bad news (I think), Organize your ideas (I think)
Explanation:
I think: Jotting down the reasoning helps/support the information (specifically) the bad news. Organizing your ideas helps to keep everything you write on track and ideas you want to mention always start from check-point A to check-point B and so forth.... (It's my thoughts of an answer)