Risk free rate of return and S&P 500: Difference between pages

Latest revision as of 15:08, 17 August 2021

US.

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An index made up of the common stock (share) prices of 500 large companies actively traded in the US stock markets.

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The 500 companies whose stocks are included in the index.

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-The theoretical rate of return which can be earned on hypothetical investments which are considered to be risk-free for modelling purposes.
+''US''.
+.
-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.
+An index made up of the common stock (share) prices of 500 large companies actively traded in the US stock markets.
-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.
+.
+The 500 companies whose stocks are included in the index.
 == See also ==
-* [[Capital asset pricing model]]
+* [[Standard & Poor's ]]
-* [[Credit spread ]]
+*[[FTSE]]
-* [[Gilts]]
+* [[Fortune 500]]
-* [[Interest rate risk]]
+* [[Index numbers]]
+* [[Tracker fund]]
+[[Category:Corporate_finance]]