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%

24

step-by-step explanation:

if it takes 8 pounds to make 12 divide 12 by 8 and you get 1.5, 1.5 x 16 = 24

step-by-step explanation:

because 1/3 is a fraction. we can tell because there is a divisor symbol between the 1 and the 3. if we were to add 2 fractions together, we would add the numerators, which is the number on top, but not the denominators, which is the number on the bottom

1/3+1/3=2/3

hope this !