Examples of 'risk-free rate' in a sentence
Meaning of "risk-free rate"
risk-free rate - This phrase refers to the theoretical rate of return on an investment that carries no risk. It is commonly used in finance and economics to describe the expected return on an asset or investment where the principal amount is considered to be secure and free from any potential loss
How to use "risk-free rate" in a sentence
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risk-free rate
Appropriate benchmark risk-free rate of interest.
The time value of money ie interest at the basic or risk-free rate.
The risk-free rate of interest for the expected term of the option.
Borrowing and lending at the risk-free rate.
A line connecting the risk-free rate of return and the market portfolio.
Can borrow and lend at the risk-free rate.
The above risk-free rate approach is not the only way to think about cap rates.
There is unlimited capital to borrow at the risk-free rate of return.
Both the risk-free rate and credit spreads have fallen just about as far as possible.
Usually expressed in relative terms to the risk-free rate and inflation.
A common benchmark for the risk-free rate are AAA-rated government bonds for shorter maturities.
All risky assets returns will be equal to the risk-free rate.
She assumes that the risk-free rate will remain the same over the coming year.
In such circumstances, the application of the disputed risk-free rate is justified.
Getting a higher risk-free rate would require owning a longer-term Treasury bond until maturity.
See also
The government bond rate can be seen as a proxy for the risk-free rate.
Another possibility used to estimate the risk-free rate is the inter-bank lending rate.
It is the rate which an investor wants over and above the risk-free rate.
The CAPM also assumes that the risk-free rate will remain constant over the discounting period.
The time value of money represented by the current market risk-free rate of interest.
Real risk-free rate of return.
Use the following data for the calculation of the risk-free rate of return.
The risk-free rate is based on that applied to ten-year bonds.
Venture capital and venture capital action plan investments are not risk-free rate sensitive.
The first factor, the risk-free rate of interest is relatively easy to estimate.
The cost of debt is obtained using the applicable market risk-free rate plus a spread of 2.
Cost of capital risk-free rate + beta coefficient of the assets* market risk premium.
The risk premium is calculated as the risk-adjusted rate of return minus the risk-free rate.
Rf or Rrf is usually the risk-free rate of return.
This subgroup recommended an enhanced CORRA as the preferred Canadian risk-free rate.
It 's often known as the risk-free rate of interest.
First, it may be that the market is anticipating a rise in the risk-free rate.
In other words, the risk-free rate of return goes up, making these investments more desirable.
A common practice with government contingent liabilities is to use a risk-free rate like the treasury rate.
The relevant risk-free rate term structures set out in Annex I ;.
Cost of capital Capital risk premium Risk-free rate.
Return at least 2X the risk-free rate of return each year.
For example, α was held to be the risk-free rate.
The risk-free rate of interest is 5.
Where r is the risk-free rate.
The risk-free rate is 7 percent.
On average, is around doubling the risk-free rate.
The risk-free rate r.
Rf is equal to the risk-free rate.
The risk-free rate is 8 percent, and the market risk premium is 4 percent.
For simplicity, we assume the risk-free rate is zero.
A 5-10-year government bond yield rate provides a fair investment benchmark for a practically risk-free rate.
An appropriate benchmark risk-free rate of interest 38.
The expected value is then discounted at r, the risk-free rate.
The risk-free rate reflects the market yield on 10-year generic Russian government bonds.
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