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
Menu
Risk free rate in negative?
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
Recent Threads
- GST rate rcm
- AI in ERP & System Audits - Why Auditors Shoul
- Can updated return be filed having salary income a
- Save LTGC on land sale
- Property given on rent- ITC
- India–EU Trade Pact: Tariffs Down, Opportuni
- How to get online work as a accountant
- GST mandatory when exporting services?
- IMS action related
- CERTIFIED FRAUD EXAMINER EXAM
Related Threads
CAclubindia
