What is considered to be the best measure of the risk-free interest rate?
A)the rate of return on a corporate bond index fund
B)the rate of return on a corporate stock index fund
C)the rate of return on the Standard and Poor's 500
D)the rate of return on short-term U.S.government bonds

Question

Quizplus · Accepted Answer

The rate of return on short-term U.S. government bonds is considered the best measure of the risk-free interest rate because these bonds are backed by the U.S. government and have minimal default risk.

What Is Considered to Be the Best Measure of the Risk-Free