Which of the following is typically considered to be the most appropriate proxy for the risk-free rate when applying the CAPM?

Question

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10-year Treasury bonds are typically considered to be the most appropriate proxy for the risk-free rate as they are issued by the government, which is considered to have a virtually zero default risk. Other options such as 10-year AAA bonds or the prime rate may also have some credit risk or variability, while a firm's current yield to maturity on outstanding debt may be influenced by factors other than pure borrowing cost such as liquidity risk or other premiums.

Which of the Following Is Typically Considered to Be the Most