Q562
Real risk-free rate is applicable when it is expected that there will be
A.
high inflation
B.
low inflation
C.
no inflation
D.
none of above
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
The risk-free rate of return is the theoretical rate of return of an investment with zero risk. The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time.