Sentences with phrase «risk free rate of return»

Sharpe ratio helps the investor tell if a mutual fund delivers the returns with respect to the risk taken by it on comparing a fund with risk free rate of return.
The 10 year US Treasury yield changes every single day and is another metric for the risk free rate of return.
I always scratch my head when I hear advisors talk about the «4 % withdrawal rule» or any withdrawal rate that's greater than a risk free rate of return for that matter.
Alpha = Mutual fund scheme return --(Risk free rate of return + (beta * (Benchmark return — Risk free rate of return)
Higher the better, if this value is negative it should be understood as mutual fund underperforms when compared to risk free rate of return (Govt.
Specifically, it measures a fund's return below the risk free rate of return, which is the 90 - day T - Bill rate (aka cash).
Therefore... when your principal balance falls to the level where to total of your annual payments produces a risk free rate of return... THEN if you have the proceeds... PAY OFF THE MORTGAGE.
And in a period such as we are in, the risk free rate of return from U.S. Treasuries is not 12 % or 16 % as it was in the early 1980's (although it is perhaps higher than we think it is).
Just 10 years ago, you could purchase a 3 - year Treasury and sock away a risk free rate of return of nearly 6 %.
Treasury bills are considered the risk free rate of return.
As interest rates rise, the risk free rate of return (i.e. the yield on US Treasuries), also rises.
The Court also noted that the preferred rate used in «DivorceMate» lump sum calculations is the Long - term Government of Canada Real Return Bond Rate, which sets out the risk free rate of return adjusted for inflation.
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