On what basis do most UK firms identify their risk free rate?

Question

Quizplus · Accepted Answer

Most UK firms identify their risk-free rate based on medium-term UK government bonds as they are considered to have minimal credit risk and are relatively stable. Inflation and short-term bonds may not accurately reflect the long-term risk-free rate. Real rate of interest is also a consideration, but it is usually calculated by adjusting the nominal risk-free rate for inflation.

On What Basis Do Most UK Firms Identify Their Risk