1. You received 3% APR interest rate from a CD account of Bank of America. By check the internet, you also noticed that the inflation rate was 2% for the year, what is the real interest rate you got? Suppose you also got a 12% APR return rate from your stock investments, how much is the risk premium on the stock investments?
2. The two primary sources of equity shown in a balance sheet are:
a. Residual equity and debt equity.
b. Capital equity and residual equity.
c. Contributed capital and earned capital.
d. Unearned capital and earned capital.