Question

In: Finance

What is used in the USA to represent the risk-free rate?

What is used in the USA to represent the risk-free rate?

Solutions

Expert Solution

Risk free rate of the return the return that investors expects if he not going to take any risk

Generally risk free assets are backed by the governments . So they are called as risk free assests.

Most often 3 months US treasury bill is oftern used as a risk free rate for investors


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