Q581
Real risk-free interest rate in addition with an inflation premium is equal to
A.
required interest rate
B.
quoted risk-free interest rate
AnswerC.
liquidity risk-free interest rate
D.
premium risk-free interest rate
Answer: Option B
Solution
Answer: Option B
Solution:
Real risk-free interest rate in addition with an inflation premium is equal to quoted risk-free interest rate. The Risk-Free Rate of return is the interest rate an investor can expect to earn on an investment that carries zero risk.