A standardized test taken by most high school Juniors and Seniors in order to qualify for college admittance and scholarships
<u>The equilibrium rate of return on a 1 year T-bond is 5%</u>
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<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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well matter is anything hard and sturdy so look up matter and you answer will be..... (go find out) hope your day is going well ♥
2+5+8+1=16
16/4=4
4 is the average (mean)
