In using the Internal Rate of Return approach, one must first calculate the discount rate on the investment that makes
A) the net present value equal zero.
B) the interest rate equal zero.
C) the interest rate equal the discount rate.
D) the first year's return positive.
A
Economics
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According to the Taylor rule, if the inflation rate in the last year was 2% and output was equal to its full-employment level, the nominal Fed funds rate should be
A) 3%. B) 4%. C) 5%. D) 6%.
Economics
Assume that a no-load open-end mutual fund holds securities with a total market value of $20 million, has no liability, and has 250,000 shares outstanding. The net asset value par share of this fund is
A) $5 million. B) $80 million. C) $5. D) $8.
Economics