Overhedging and RFR: Difference between pages
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imported>SarahB m (completed definition from Glossary; added See Also) |
imported>Doug Williamson (Recognise that RFRs are not entirely risk-free.) |
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Risk-Free Rate. | |||
The abbreviation 'RFR' usually refers to risk-free benchmark interest rates, such as SONIA. | |||
Also known as ''near'' risk-free rates, recognising that such rates are never entirely risk-free. | |||
Theoretically risk free rates of ''investment'' return, for example in the Capital asset pricing model, are more often designated by 'Rf' or 'rf'. | |||
==See also== | |||
*[[Capital asset pricing model]] | |||
*[[RFR WG]] | |||
*[[Risk-free rate of return]] | |||
*[[Risk-free rates]] | |||
*[[SONIA]] | |||
[[Category:Corporate_financial_management]] | |||
[[Category:Financial_products_and_markets]] | |||
Revision as of 18:33, 1 December 2018
Risk-Free Rate.
The abbreviation 'RFR' usually refers to risk-free benchmark interest rates, such as SONIA.
Also known as near risk-free rates, recognising that such rates are never entirely risk-free.
Theoretically risk free rates of investment return, for example in the Capital asset pricing model, are more often designated by 'Rf' or 'rf'.