Question

You read in The Wall Street Journal that 30-day T-bills are currently yielding 5.8%. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums: Inflation premium=3.25%. Liquidity premium=0.6%. Maturity risk premium=1.85%. Default risk premium=2.15%. On the basis of these data, what is the real risk-free rate of return?

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QUESTION

In a survey of 75 business travelers, it was found that of three daily newspaper, New York Times, Wall Street Journal, and USA Today

 23 read New York Times  18 read Wall Street Journal  14 read USA Today  10 read New York Times and Wall Street Journal  9 read New York Times and USA Today  8 read Wall Street Journal and USA Today  5 read all three (a) How many read none of these three magazines? (b) How many read New York Times alone? (c) How many read Wall Street Journal alone? (d) How many read USA Today? (e) How many read neither New York Times nor Wall Street Journal? (f) How many read New York Times or Wall Street Journal or both?\begin{array}{ll} & \text{ 23 read New York Times } \\ & \text{ 18 read Wall Street Journal } \\ & \text{ 14 read USA Today } \\ & \text{ 10 read New York Times and Wall Street Journal } \\ & \text{ 9 read New York Times and USA Today } \\ & \text{ 8 read Wall Street Journal and USA Today } \\ & \text{ 5 read all three } \\\\ (a)& \text{ How many read none of these three magazines? } \\ (b)& \text{ How many read New York Times alone? } \\ (c)& \text{ How many read Wall Street Journal alone? }\\ (d)& \text{ How many read USA Today? } \\ (e)& \text{ How many read neither New York Times nor Wall Street Journal? } \\ (f) & \text{ How many read New York Times or Wall Street Journal or both?} \end{array}