{"title":"'Normalized' Risk-Free Rate: Fiction or Science Fiction?","authors":"Pablo Fernández","doi":"10.2139/ssrn.3708863","DOIUrl":null,"url":null,"abstract":"As interest rates on Government Bonds have decreased, some analysts and consultants in Europe and in the US are using what they call “Normalized Risk-Free rate”. \n \nWe show several inconsistencies and errors in the use of “Normalized Risk-Free rate”. \nSection 5 is a short case that may be used in class. It contains 26 interesting comments.","PeriodicalId":208149,"journal":{"name":"Finance Educator: Courses","volume":"40 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2020-10-10","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"3","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Finance Educator: Courses","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2139/ssrn.3708863","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
引用次数: 3
Abstract
As interest rates on Government Bonds have decreased, some analysts and consultants in Europe and in the US are using what they call “Normalized Risk-Free rate”.
We show several inconsistencies and errors in the use of “Normalized Risk-Free rate”.
Section 5 is a short case that may be used in class. It contains 26 interesting comments.