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Sample chapter problem
Course Materials are for the exclusive use of registered
Course participants only and shall not be redistributed.
© The McGraw-Hill Companies, Inc., 1999, 2000, 2001, 2002
The Investor, Inc. 1999, 2000, 2001, 2002.

CHAPTER 5

History of Interest Rates and Risk Premiums

 

A. MULTIPLE CHOICE QUESTIONS

5.1 Over the past year you earned a nominal rate of interest of 10 percent on your money. The inflation rate was 5 percent over the same period. The exact actual growth rate of your purchasing power was

a. 15.5%.

b. 10%.

c. 5%.

d. 4.8%.

e. none of the above.

 

End of Sample chapter problem

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