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Rethinking the Risk-Free Rate in a Volatile World
The risk-free rate, often benchmarked against government bonds, is a cornerstone of financial valuation and risk management. However, in an era of unprecedented economic uncertainty, are traditional proxies still truly 'risk-free'? Here are the limitations of relying solely on government bonds and explores alternative perspectives and considerations for determining a more robust risk-free rate in today's volatile global landscape.[…]