ABOUT:
The rate used to discount future cash flows is based on the risk-free rate plus a premium for the risk of those particular cash flows. In effect, the risk-free rate is the lowest return, or the lowest rate of interest, that investors would be willing to accept (for a riskless investment).rnrnThis video goes into what the risk-free rate is and what benchmarks might be used to establish its value. rn Added: 10-07-2008 |
Runtime: 3m10s |
Views: 188