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How do you find the Risk free rate?

2006-10-12 12:14:22 · 2 answers · asked by stockmarketwiz21 2 in Business & Finance Other - Business & Finance

2 answers

In theory, the risk-free rate is the minimum return an investor expects for any investment since he or she would not bear any risk unless the potential rate of return is greater than the risk-free rate.

In practice, however, the risk-free rate does not exist since even the safest investments carry a very small amount of risk. Thus, the interest rate on a three-month U.S. Treasury bill is often used as the risk-free rate.

2006-10-12 22:55:15 · answer #1 · answered by dredude52 6 · 0 0

It should be in the finance section of your newspaper. You may have to check for it a few days as some papers only list that type of thing once a week.

2006-10-12 19:29:20 · answer #2 · answered by Anonymous · 0 0

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