A suitable measure of Rf, the risk- free rate, is the yield on a Commonwealth Government bond.

Name: A suitable measure of Rf, the risk- free rate, is the yield on a Commonwealth Government bond.
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The yield on a Commonwealth Government bond is often considered a suitable measure of the risk-free rate because these bonds are backed by the government and are considered to have minimal default risk.

A Suitable Measure of Rf, the Risk- Free Rate, Is