The Mysterious World of Risk-Free Returns
Risk-free rate of return—now that’s a phrase that could put a caffeinated squirrel to sleep! But don’t yawn just yet, because understanding this concept is like having a superpower for your financial decisions. Let’s break it down, shall we?
What Is the Risk-Free Rate of Return?
Simply put, it’s the rate of return on an investment that has zero risk. Nada. Zilch. Imagine an investment as serene as a yoga retreat that even your grandma would approve of. That’s what we’re talking about here. And for those keeping score, US and UK Treasury bills (or T-bills) often get the crown for being the closest real-world approximations.
mermaid
pie title Risk-Free Investments
