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The real risk-free rate of return depends most on
A. interest rates.
B. the real growth rate of the economy.
C. money supply.
D. inflation.
Answer: B
Explanation:
Explanation/Reference:
Explanation:
The real risk-free rate of return does not take inflation into account (in contrast to the nominal risk-free rate). It should depend on the real growth rate of the economy because the capital invested should grow at least as fast as the economy. The rate can also be temporarily affected by tightness or ease in the capital markets.
NEW QUESTION: 2
Compared to a cross country skier, a basketball player would have a higher percentage of which of the following?
A. Type II Muscle Fibers
B. Type I Muscle Fibers
C. Capillary Density
D. Myoglobin Content
Answer: A
NEW QUESTION: 3
Which is the CORRECT activity to carry out the "How do we get there" phase of the Continual Service improvement approach?
A. Policy and governance review
B. Baseline assessments
C. Service and process improvement
D. Measurable targets
Answer: C
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