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#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

Tags

#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

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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.

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.

status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
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repetition number in this series | 0 | memorised on | scheduled repetition | ||||

scheduled repetition interval | last repetition or drill |

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