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#tvm
Question
What is the difference between nominal risk-free rate and real risk-free rate of return?
The nominal one takes inflation into account

Tags
#tvm
Question
What is the difference between nominal risk-free rate and real risk-free rate of return?
?

Tags
#tvm
Question
What is the difference between nominal risk-free rate and real risk-free rate of return?
The nominal one takes inflation into account
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The nominal risk-free rate of return includes both the real risk-free rate of return and the expected rate of inflation. A decrease in expected inflation rate would decrease the nominal risk-free rate of return, but would have no effect on the real risk-free rate of return.

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