Real and nominal rates of interest Nick is a product manager in an investment 1 P61 banking
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Real and nominal rates of interest Nick is a product manager in an investment 1 P61 banking firm. His supervisor asked him to price an investment product, so Nick conducted some research and the market information he obtained is as follows: The rate of return of 3-month Treasury bills is 6%, the expected inflation rate is and the risk premium of an investment product with similar characteristics in the market is 5%. What should be the nominal rate of return of Nick\'s investment product?
Related Book For
Managerial Decision Modeling with Spreadsheets
ISBN: 978-0136115830
3rd edition
Authors: Nagraj Balakrishnan, Barry Render, Jr. Ralph M. Stair
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