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.
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...
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...
Learn about risk-free assets, their characteristics, and how they are used in finance to ensure security and stability in investments.
DAMODARAN, A.. What is the Riskfree Rate? A search for the Basic Building Block. - Stern School of Business. - New York University 2008.Damodaran, A. "What Is the Riskfree Rate? A Search for the Basic Building Block." Stern School of Business, New York University, 2008....
The real risk-free rate of interest can be defined as that rate, which will exist when there is no inflation on the default-free securities. Since...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask...
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 ...
The risk-free interest rate is a fundamental concept in finance, serving as a benchmark for evaluating investments, determining discount rates, and calculating risk premiums. If you’re interested in learning more about related topics, you might want to read about the Capital Asset Pricing Model ...
Answer to: Assume that he risk-free rate is 6% and the expected return on the market is 13%. What is the required rate of return on stock that has...
Assuming a risk-free rate of 5%, what is the Sharpe ratio for the Plumb America Index Fund?A. +0.5667.B. -0.5776.C. +0.6716. 正确答案:A 分享到: 答案解析: Sharpe ratio = (Return – risk free rate) / std. deviation = (0.22 − 0.05) / 0.30 = 0.5667 统计:共计0人答过,平均...