IAI sept 2016

Discussion in 'CT2' started by Shikha Agarwal, Sep 24, 2016.

  1. In this ques, what will be the impact of negativ rf? Do we hav to ignore it or consider it as well?
     

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  2. Please reply..
     
  3. Simon James

    Simon James ActEd Tutor Staff Member

    The (negative) risk free rate certainly seems to be used in part i, as investment is in "risk free avenues"
     
  4. So..we'll charge interest @2%..?
     
  5. Simon James

    Simon James ActEd Tutor Staff Member

    It looks like that is what is meant, yes (but I haven't tried it myself or looked at the solution)
     
  6. Solution isn't available yet on website.. but thnq..
     

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