Cryptocurrency Q&A What does RF mean in finance?

What does RF mean in finance?

Valentino Valentino Wed Oct 30 2024 | 5 answers 828
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. What does RF mean in finance?

5 answers

Daniele Daniele Fri Nov 01 2024
The Risk Free Rate (rf) represents a unique concept in financial theory.

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KiteFlyer 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.

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EchoChaser 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.

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TeaCeremony TeaCeremony Fri Nov 01 2024
The rf serves as a benchmark for evaluating the potential returns of other investments.

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Valentino 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.

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