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| No chuck, you should also know about the real risk free rate and nominal risk free rate. | |
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| What about those two sir? | |
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| The risk-free rate of return after taking inflation into account. For example, if the risk-free rate of return is 3% and the inflation rate is 2%, the real risk-free rate of return is 1%. | |
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| Because the risk-free rate is low in the first place, the real return can sometimes be negative, particularly in times of high inflation. | |
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