Australian government securities do not have any default risk and are the best proxy measure for the risk-free rate.

Name: Australian government securities do not have any default risk and are the best proxy measure for the risk-free rate.
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Question

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Australian government securities are considered to have no default risk because the government has the ability to raise taxes and/or print money to meet its obligations. As a result, they are often used as a benchmark for the risk-free rate in Australia.

Australian Government Securities Do Not Have Any Default Risk and Are