3 ms·
"risk-free rates of return" - typically means "losing value via inflation"
by rllearneratwork 5y ago
"risk-free rates of return" - typically means "losing value via inflation"
- snowwrestler 5y agoNo it means keeping up with inflation but not substantially beating it.
- 1123581321 5y agoThe other user is right. In a low interest rate environment it’s well possible for risk-free to underperform inflation. You can see this in the current short-term US treasury rates. This is one of the reasons so much money is piling into riskier assets.
- snowwrestler 5y agoI assure you that major corporations understand this and pursue an investing strategy to at least keep up with inflation.