An analyst needs a proxy for the risk-free rate. She uses the rate ear…

Question

An analyst needs a proxy for the risk-free rate. She uses the rate earned on:

Accepted Answer

C. US Treasury securities

1. Default risk should be negligible.
2. Government issues are used.
3. They are US Treasury securities.
_Source: OpenStax Principles of Finance 2e, Chapter 15, How to Think about Investing._

Answer

Foreign equity funds

Answer

Commodity futures

Answer

Corporate junk bonds

An analyst needs a proxy for the risk-free rate. She uses the rate earned on:

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