banner_ad

Risk free rate in negative?

Final 714 views 1 replies

Hi All, while reading portfolio management SFM i got a small doubt.

Can a risk free investment rate be in negative? say during the days of economic down turn or during deflation etc

Replies (1)

Ofcourse, The interest rates can be negative in the event of deflation. Though such cases are rare but that does not mean it cannot happen. In this system, bank charges you certain rate for keeping your money. By interest rates i mean nominal interest rates. For more information:

 

https://en.wikipedia.org/wiki/Interest_rate#Negative_interest_rates


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details