The closest approximation to the real risk-free rate of


The closest approximation to the real, risk-free rate of interest is

A) The short-term Treasury bill rate minus the inflation rate.

B) The short-term Treasury bill rate plus the inflation rate.

C) The 10 year Treasury bond rate minus the inflation rate.

D) The 10 year Treasury bond rate minus the 1 year Treasury bill rate.

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Financial Management: The closest approximation to the real risk-free rate of
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