The so-called “real risk-free rate” is computed by backing out inflation ... we can see how the actual “risk-free” return is basically reduced to zero. While this sounds much less ...

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 ...

There are actually two different types of rate of return, and they are not created equal: average rate of return and real, or actual ... by sequence of returns risk, is that you could drastically ...

This is the formula: The excess return of the portfolio over the risk-free rate is standardized by the standard deviation of the excess of the portfolio return. How It Works Hypothetically ...

Sequence of return risk stems from the timing of investment returns rather than the average rate of return itself ... He is the author of Retire Free: Five Steps Toward Living Your Best Retirement.