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the following stateme ) In general, money today is worth more than money in one year. ) We define the risk-free interest rate (rf) for a given period as the interest rate at w honey can be borrowed or lent without risk over that period. ) We refer to (1-r) as the interest rate factor for risk-free cash flows. ) For most financial decisions, costs and benefits occur at different points in time. time value of

the following stateme ) In general, money today is worth more than money in one year. ) We define the risk-free interest rate (rf) for a given period as the interest rate at w honey can be borrowed or lent without risk over that period. ) We refer to (1-r) as the interest rate factor for risk-free cash flows. ) For most financial decisions, costs and benefits occur at different points in time. time value of

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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2) Which of the following statements is INCORRECT based on the time value of money? A) In general, money today is worth more than money in one year. B) We define the risk-free interest rate (rf) for a given period as the interest rate at which money can be borrowed or lent without risk over that period. C) We refer to (1-r) as the interest rate factor for risk-free cash flows. D) For most financial decisions, costs and benefits occur at different points in time.
Transcribed Image Text:2) Which of the following statements is INCORRECT based on the time value of money? A) In general, money today is worth more than money in one year. B) We define the risk-free interest rate (rf) for a given period as the interest rate at which money can be borrowed or lent without risk over that period. C) We refer to (1-r) as the interest rate factor for risk-free cash flows. D) For most financial decisions, costs and benefits occur at different points in time.
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