Hello, Welcome to the 46th issue of Allison’s Ode to the Second Moment, a newsletter about the opposite of risk. Risk-Free or Die The most important, and overlooked, price in finance is the price of risk-free assets. When an investor thinks about moving money into the future, the risk-free rate is the foundation of his or her decision. If an investor can score a 100% return for certain, why bother taking any risk at all? If the risk-free rate is only 0% (or negative), investors may feel pressure to take more risk in order to reach their financial goals.
Allison's Ode to the Second Moment
Allison's Ode to the Second Moment
Hello, Welcome to the 46th issue of Allison’s Ode to the Second Moment, a newsletter about the opposite of risk. Risk-Free or Die The most important, and overlooked, price in finance is the price of risk-free assets. When an investor thinks about moving money into the future, the risk-free rate is the foundation of his or her decision. If an investor can score a 100% return for certain, why bother taking any risk at all? If the risk-free rate is only 0% (or negative), investors may feel pressure to take more risk in order to reach their financial goals.
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