What is the difference between nominal risk-free rate and real risk-free rate of return?
Answer
The nominal one takes inflation into account
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#tvm
Question
What is the difference between nominal risk-free rate and real risk-free rate of return?
Answer
?
Tags
#tvm
Question
What is the difference between nominal risk-free rate and real risk-free rate of return?
Answer
The nominal one takes inflation into account
If you want to change selection, open document below and click on "Move attachment"
Open it 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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