Question: please answer this question as soon as possible. ASSIGNMENT 1 Question 1 1. What are the components of interest rate? Briefly explain each of them

please answer this question as soon as possible. ASSIGNMENT 1 Question

please answer this question as soon as possible.

ASSIGNMENT 1 Question 1 1. What are the components of interest rate? Briefly explain each of them 2. Tom has $40,000 to invest and he has to choose where to invest. The following information is given : Country Russia Britain Canada Real rate 4% 3% 2% CPI [ Beg] 12546 8765 7650 CPI [end] 14100 9200 8100 Risk premium 4% 1.5 1.5 Return rate 15% 11% 11% Required Which country will he choose to invest his money? 3. Using CAPM model find the r or the required rate of return. The following information is provided: Government bond rate Covariance Standard deviation Stock market index in Jan 2020 Stock market index in Dec 2020 2.5% 17,650 9,400 15,860 16,540 Calculater

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