The one-year interest rate is 4%. The interest rate for a two-year security is 6%. The one-year
interest rate one year from now is 8.34%. According to the liquidity preference theory, the risk
premium for the second one-year investment is
A) 0.34%. B) 0.50%. C) 1.66%. D) 0.30%.
D
Business
You might also like to view...
What decision would be made under maximin?
An investor is consider four different opportunities, A, B, C, or D. The payoff for each opportunity will depend on the economic conditions, represented in the payoff table below. Economic Condition Poor Average Good Excellent Investment (S1) (S2) (S3) (S4) A 50 75 20 30 B 80 15 40 50 C -100 300 -50 10 D 25 25 25 25
Business
What is the simplex method?
What will be an ideal response?
Business