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.
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
Question: If the risk-free rate is 6.80% and the risk premium is 7.8%, what is the required return? (Round your answer to 1 decimal places.) Required Return: The required rate of return on any investment can be divided in two part...
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Required Rate of Return:The Risk-free Rate of Return is considered as zero risk return, where investments carry no risk. For example, the U.S treasury bill is considered a zero risk investment. The Risk Premium is a return that is expected to earn ov...
We find that the best approximation for the risk free yield is the UK three month T-bill yield, followed by the German three month T-bill yield. As no one sovereign yield curve dominates all others, we find that a composite yield curve, consisting of French, Italian and UK bonds at ...
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. What Is the Risk-Free Rate of Return? When investors buy stocks, bonds, real estate, certificates of deposits, or any other ...
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...