Suppose that a class of 20 studentsparticipates in the Interest Rates and Invest

Question

Suppose that a class of 20 studentsparticipates in the Interest Rates and Investment Experiment. Thetable below shows the nominal rates of return on the projectsassigned to the ten borrowers in Round 1 of a particular variationof the experiment.

Borrower Nominal Rateof
Return on Project (%) Ayon 8.6 Barb 7.8 Carlos 7.0 Darius 6.2 Ellen 5.4 Fay 4.6 Grace 3.8 Habeeb 3.0 Ida 2.2 Jack 1.4

In Round 1, the nominal T-bill interest rate is 4.8%. Suppose that a class of 20 studentsparticipates in the Interest Rates and Investment Experiment. Thetable below shows the nominal rates of return on the projectsassigned to the ten borrowers in Round 1 of a particular variationof the experiment.

Explanation / Answer

I am going to give my opinion on this (I am not familiar inthis, I apologize), A Interest rates of 4.8% or slightly higher I guess this has to be at least 4.8% matching that of thetreasury bill, the other either too low or too high

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