Exchange Currency

risk-free rate puzzle (RFRP)

An irregularity in the difference between the returns on the government bonds compared to returns on equities. Lower rates are received on government bonds, compared to equities, because of the lower risk involved.

Related information about risk-free rate puzzle (RFRP):
  1. Risk-Free Rate Puzzle (RFRP) Definition | Investopedia
    An anomaly in the difference between the lower historic real returns of government bonds compared to equities. This puzzle is the inverse of the equity premium ...
     
  2. Catch On To The CCAPM
    Jul 18, 2010 ... Another problem specific to the CCAPM is that it has led to two puzzles: the equity premium puzzle (EPP) and the risk-free rate puzzle (RFRP).
     
  3. Risk Premium Definition | Investopedia
    Risk-Free Rate Puzzle - RFRP. An anomaly in ... Risk-Adjusted Return. A concept that ... Risk-Free Rate Of Return. The theoretical ... Risk-Return Tradeoff ...
     
  4. Risk-Free Rate Puzzle - RFRP: Definition from Answers.com
    Ris n. [AS. hrīs ; akin to D. rils , G. reis , OHG. hrīs .] A bough or branch; a twig. [ Obs.] As white as is the blossom upon the ris.
     
  5. What is risk-free rate puzzle (RFRP)? definition and meaning
    Definition of risk-free rate puzzle (RFRP): An irregularity in the difference between the returns on the government bonds compared to returns on equities.
     
  6. InvestorWords.com: Terms starting with R
    risk-free rate puzzle (RFRP) · risk-free return · risk-reward ratio · risk-weighted asset · risk/return trade-off · riskless arbitrage · riskless asset · riskless principal ...
     
  7. Browse InvestorWords.com: Bonds terms
    risk-free rate puzzle (RFRP) · risk-free return · riskless asset · riskless rate of return · roll-down return · round lot · rundown · Savings Bond · savings bond plan ...
     
  8. Technical Analysis vs. Fundamental Analysis : a Comparison ...
    Revenue Recognition Reversionary Annuities Risk Analysis Risk Curve Risk Of Ruin Risk-Adjusted Return On Capital RAROC Risk-Free Rate Puzzle RFRP ...