EBK INVESTMENTS
EBK INVESTMENTS
11th Edition
ISBN: 9781259357480
Author: Bodie
Publisher: MCGRAW HILL BOOK COMPANY
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Chapter 25, Problem 7PS
Summary Introduction

To calculate:

The risk-free dollar denominated return by investing in British bills.

Introduction:

Risk free rate of return: It is the theoretical rate of return with zero risk of in an investment.

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3 years ago, you invested $9,200. In 3 years, you expect to have $14,167. If you expect to earn the same annual return after 3 years from today as the annual return implied from the past and expected values given in the problem, then in how many years from today do you expect to have $28,798?
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