The risk-free rate of return is one of the most basic components of modern finance. The risk-free asset only applies in theory, but its actual safety rarely comes into question until events fall far ...

Required rate of return (RRR) gives investors a benchmark to determine the minimum acceptable return on an investment considering the risk involved. By calculating RRR, investors can assess whether an ...

High risk-adjusted returns suggest efficient performance for the invested capital. Low risk-adjusted returns indicate potentially suboptimal investments. Comparing risk-adjusted returns helps select ...