The so-called risk-free rate essentially measures the investors'

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The risk-free rate is the rate of return that an investor can expect with certainty, meaning there is no risk involved. This rate is usually based on the yield of government bonds, which are considered virtually risk-free. As there is no risk involved, the risk-free rate essentially measures the investors' time preference – how much they value the time value of money.

The So-Called Risk-Free Rate Essentially Measures the Investors