I'm trying to understand a financial term that I came across. It's the abbreviation 'RF'. I want to know what it stands for and its significance in the field of finance.
5 answers
Daniele
Fri Nov 01 2024
The Risk Free Rate (rf) represents a unique concept in financial theory.
KiteFlyer
Fri Nov 01 2024
It is defined as the rate of return that an investor can expect to receive on an asset with absolutely no risk.
EchoChaser
Fri Nov 01 2024
Such assets are typically considered to be government-backed securities, like treasury bills, which have a very low probability of defaulting.
TeaCeremony
Fri Nov 01 2024
The rf serves as a benchmark for evaluating the potential returns of other investments.
Valentino
Thu Oct 31 2024
Investors often use the rf to determine the minimum return they should accept on investments that carry a higher degree of risk.