What is the current risk-free interest rate

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1. Suppose a security with a risk-free cash flow of $146 in one-year trades for $138 today. If there are no arbitrage opportunities, what is the current risk-free interest rate?

Round answer to two decimal places

2. Alpha Industries stock had returns of 17 percent, -11 percent, 9 percent, and 2 percent for four of the last five years, respectively. The average return of the stock over this period was 8.7 percent. What is the standard deviation of the stock's returns?

12.90 percent

15.47 percent

14.31 percent

15.14 percent

14.67 percent

Reference no: EM131891023

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