Suppose the real risk-free rate is 2.50% and the future rate of inflation is expected to be constant at 7.00%. what rate of return would you expect on a 5-year treasury security, assuming the pure expectations theory is valid? disregard cross-product terms, i. e., if averaging is required, use the arithmetic average. a. 9.50% b. 11.59% c. 7.70% d. 7.41% e. 8.46%

option (a) 9.50%

Step-by-step explanation:

Data provided in the question:

The real risk free rate = 2.50%

The future rate of inflation = 7.00%

Now,

The Expected rate of return after 5 - year treasury deposited will be calculated using the relation,

Return rate = Inflation rate + Real risk free rate

on substituting the respective values, we get

Return rate = 7.00% + 2.50%

or

Return rate = 9.50%

Hence,.

the correct answer is option (a) 9.50%

answer: 4/6 =5/7.5

step-by-step explanation: it is based on scale and the scale between the two is 1.25. the answer is correct but i dont know if i explained it right

from the figure we get,

the x axis shows   the months and,

the y-axis shows the number of satisfied customer.

each line or each cell in upward direction (y-axis) shows 500.

the appropriate scale for the y - axis is: -

a = 2000 customers

b = 4000 customers

c = 6000 customers

d = 8000 customers

e = 10000 customers

f = 12000 customers

g = 14000 customers