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Question
Which of the following statements is most correct?a) The real risk-free rate of interest is the rate that is shown in the Wall Street Journal for the shortest term federal securities.
b) The real risk-free rate of interest is the rate that is shown in the Wall Street Journal for the longest term federal securities.
c) The real risk-free rate of interest is the rate that is shown in the Wall Street Journal for the shortest term federal securities, plus a forecast of the rate of inflation for the period of the securities.
d) The real risk-free rate of interest is the rate that is shown in the Wall Street Journal for the longest term federal securities, plus a forecast of the rate of inflation for the period of the securities.
Answer
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