Nico Nelson, a management trainee at a large New York-based bank, ...

[Anajune7]

Nico Nelson, a management trainee at a large New York-based bank, is trying to estimate the real rate of return expected by investors.
 
  He notes that the 3-month T-bill currently yields 3 percent and has decided to use the consumer price index as a proxy for expected inflation. What is the estimated real rate of interest if the CPI is currently 2 percent?
  A) 5
  B) 1
  C) 3
  D) 2

Question 2

The basic inputs to an effective financial analysis are a firm's income statement and the balance sheet.
 
  Indicate whether the statement is true or false

[IAPPLET]

Answer to Question 1

B

Answer to Question 2

TRUE

[Anajune7]

TYSM

[coreycathey]

Excellent