Future-proof and Risk free rate of return: Difference between pages
From ACT Wiki
(Difference between pages)
imported>Doug Williamson (Create page. Sources: The Treasurer, Aug 2018, p13 & linked pages.) |
imported>Doug Williamson (Source: http://www.bis.org/publ/bppdf/bispap72l.pdf) |
||
Line 1: | Line 1: | ||
The theoretical rate of return which can be earned on hypothetical investments which are considered to be risk-free for modelling purposes. | |||
Historically, the rates of return on certain types of domestic central government debt were considered to be a close enough proxy for such hypothetical risk-free investments. | |||
In the modern era, domestic central government debt is no longer considered to be risk-free for this purpose, nor for a number of other purposes for which it was historically considered to be risk-free. | |||
== See also == | |||
* [[Credit spread ]] | |||
* [[Gilts]] | |||
* [[Interest rate risk]] | |||
==See also== | |||
* [[ | |||
* [[ | |||
* [[ | |||
Revision as of 11:56, 12 August 2013
The theoretical rate of return which can be earned on hypothetical investments which are considered to be risk-free for modelling purposes.
Historically, the rates of return on certain types of domestic central government debt were considered to be a close enough proxy for such hypothetical risk-free investments.
In the modern era, domestic central government debt is no longer considered to be risk-free for this purpose, nor for a number of other purposes for which it was historically considered to be risk-free.