Real risk-free interest rate in addition with an inflation premium is equal to_____________?
ALiquidity risk-free interest rate
BRequired interest rate
CQuoted risk-free interest rate
DPremium risk-free interest rate
Correct answer
C. Quoted risk-free interest rate
Explanation
Quoted risk-free interest rate is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.