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risk free rate

This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.

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May 2, 2017 at 9:30 pm #384635
Muslim Farooque
Member
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sir how can we find risk free rate in a country like for example in USA is the risk free rate the rate on treasury bills, i filtered that on their treasury site however there was something like 13 weeks 52 weeks equivalent etc and its given in decimal points and not percentages,
May 3, 2017 at 6:43 am #384651
John Moffat
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You would not be required to do this in Paper P4!
The rate on treasury bills would be the best indicator of the risk-free rate. You should use the 52 week equivalent, and decimal points convert to %’s (0.01 is the same as 1%).
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