1year treasury investment yield 4%; while a high tech comonn stock investment yeilds 25%. the risk free rate of return is: . 0%b. 4%c. 21%d. 25%

B. 4%

Explanation:

The risk free return is equal to the one year treasury investment yield because the treasury investment is a government bond and the people have a guarantee by the government that they will be paid what they are owed, thus a 1 year treasury investment yield is often looked at as a risk free rate of return. In this question the one year treasury yield is 4% so the risk free rate of return is also 4%.

almost done 23 out of 25

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.