The interest rate theories that we studied are about the determination of the risk-free rate of interest, which is a component of all interest rates. What is the closest real-world approximation to this risk-free rate of return? O The market interest rate on U.S. government bonds. O The stock market return. The interest rate on high quality corporate bonds. O The LIBOR rate. O The interest rate on medium quality corporate bonds.

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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The interest rate theories that we studied are about the determination of the risk-free rate of interest, which is a
component of all interest rates. What is the closest real-world approximation to this risk-free rate of return?
O The market interest rate on U.S. government bonds.
O The stock market return.
The interest rate on high quality corporate bonds.
O The LIBOR rate.
O The interest rate on medium quality corporate bonds.
Transcribed Image Text:The interest rate theories that we studied are about the determination of the risk-free rate of interest, which is a component of all interest rates. What is the closest real-world approximation to this risk-free rate of return? O The market interest rate on U.S. government bonds. O The stock market return. The interest rate on high quality corporate bonds. O The LIBOR rate. O The interest rate on medium quality corporate bonds.
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