Q.

What is the risk-free rate in an environment where the real rate is 3% and inflation is running at 3%? Use either method found in chapter one.

A. 14.5% or just 14%
B. 10.21% or just 10%
C. 6.09% or just 6%
D. 9.09% or just 9%
Answer» C. 6.09% or just 6%
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