Risk Free Rate in Common Probability Distribution Formulas

The Risk Free Rate is the theoretical rate of return of an investment with zero risks. And is denoted by R_f.

Common Probability Distribution formulas that make use of Risk Free Rate

fxSortino RatioGo

fxMarket Risk PremiumGo

fxDefault Risk PremiumGo

What is the Risk Free Rate?

The Risk Free Rate is the theoretical rate of return of an investment with zero risks.

Can the Risk Free Rate be negative?

{YesorNo}, the Risk Free Rate, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

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