CFA Practice Question

There are 57 practice questions for this study session.

CFA Practice Question

The authors suggest that for the purpose of valuation,

A. long-term government bond YTM should be used as the risk-free rate.
B. shot-term government debt rate should be used as the risk-free rate.
C. the analyst should try to match the duration of the risk-free-rate measure to the duration of the asset being valued.
Correct Answer: C

User Contributed Comments 2

User Comment
kingirm risk free rate has a duration ?? risk free rate is the risk free rate, i think.. any thoughts?
nadine2018 use t-bill for short term and t-bonds for long term
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