Expectations hypothesis for interest rates

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(a) True or False: "Assume that the Expectations Hypothesis for interest rates is true. If the real rate of interest is 3% and the expected inflation rate is 3%, then the nominal interest rate will also be 3%."

(b) True or False: Actively managed mutual funds generally have higher fees than index mutual funds.

(c) True or False: "Historically, the market risk premium has averaged approximately 11% per year."

(d) True or False: "With a Roth IRA, investments are made using before-tax dollars and withdrawals once you retire are taxed."

Reference no: EM131056824

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