Risk-free rate refers to the yield on top-quality government stocks. It is often called the risk-free interest rate. The risk-free benchmark, for the majority of investors, is the US Treasury yield.
A risk-free rate of return is the theoretical rate of return on an investment that has zero risk associated with it. There is no such thing as a true risk-free rate of return. The risk-free rate of return can help investors evaluate economic conditions and compare various assets. ...
Cost of equity = risk-free rate + beta × (required return – risk-free rate) = 4% + 0.75 (7% – 4%) = 4% + (0.75 x 3%) = 4% + 2.25% = 6.25% The required return of the stock is 6.25%, which means that investors see a growth potential in the firm since they are willin...
(2008). What is the riskfree rate? A Search for the Basic Building Block. Stern School of Business, 1-33.Damodaran, A. "What is the Risk Free Rate? A Search for the Basic Building Block". New York: Stern School of Business, 2008b...
aold file not found. however, a file of the same name was 没被发现的老文件。 然而,同一个名字的文件是 [translate] aIf the risk-free rate is 6% and the market risk premium is also 6% What is the stock’s beta? 如果无风险的率是6%,并且市场风险保险费是否是也6%什么是股票的beta ? [...
What is the risk-free interest rate? The risk-free interest rate is the return on an investment that is considered free from any risk of financial loss. It represents the minimum return an investor would expect from an absolutely risk-free investment over a specific period. In practice, the...
the risk-free rate also acts as a benchmark for other interest rates. This means other financial institutions use it to set their interest rates. In the US, the interest rate on a three-month U.S. Treasury bill is usually used as a risk-free rate because of the large size and deep ...
百度试题 题目What is the risk premium for a stock when the risk free rate is 3%, the S&P500 index has an expected return of 12% and the stock has a beta of 3?相关知识点: 试题来源: 解析 27% 反馈 收藏
In theory, the risk-free rate is the minimum return an investor expects for any investment. Investors will not accept additional risk unless the potential rate of return is greater than the risk-free rate. If you are finding a proxy for the risk-free rate of return, you must consider the...
The risk-free rate puzzle (RFRP) is a market anomaly observed in the persistent difference between the lower historic real returns of government bonds compared to equities. This puzzle is the inverse of theequity premium puzzleand looks at the disparity from the perspective of the lower returning...