KpossibleRisk-Free Rate. What is a risk-free rate? Give an example of an investment with a riskfree rate. Why is there no risk?A risk-free rate is: (Select the best answer below.)OA. an interest rate that is not guaranteed on an investment for a specified period.OB. an interest rate guaranteed on an investment for a unspecified period.OC. an interest rate guaranteed on an investment for a specified period.OD. an interest rate that is not guaranteed on an investment for an unspecifiedperiod.There is no risk because a risk-free investment: (Select the best answer below.)OA. pays an interest rate guaranteed on an investment for an unspecified period.OB. would pay investors even if the financial institution went into bankruptcy.OC. is a checking account.OD. is a zero interest loan.

Please refer below page.If you have any questions feel free to ask.Explanation:

Answered: K possible Risk-Free Rate. What is a…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 14Q: What determines the anticipated interest rate payout for an investment?

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