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They're not risk free, because there's always the currency risk. 20% of my portfolio is US govt bonds, but that's mostly to hedge against the fall of my country
by badpun 7y ago
They're not risk free, because there's always the currency risk. 20% of my portfolio is US govt bonds, but that's mostly to hedge against the fall of my country's currency.
- mruts 7y agoYou’re right, nothing is risk free. In finance though, the three month US Treasury bill yield is considered the risk-free rate. The only reason why this matters is that the risk-free rate is built into almost all financial equations and models.