In August of 2014, Mary Jensen invested in a one-year Treasury security with a risk-free return...

In August of 2014, Mary Jensen invested in a one-year Treasury security with a risk-free return of 1.0%. The consumer price index rose at a rate of 1.25% from August of 2014 to August 2015. Mary’s real rate of return was approximately _______.

Group of answer choices

2.25%

0.25%

-0.25%

1.0%

Expert Solution

jeff jeffy answered 2 years ago

Is it true that a US Treasury security is risk-free?

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