Real risk-free rate is applicable when it is expected that there will be

A. high inflation

B. low inflation

C. no inflation

D. none of above

Answer: Option D

Solution(By Examveda Team)

The risk-free rate of return is the theoretical rate of return of an investment with zero risk. The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time.

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