need help in some oc concepts

[lovkesh k]

Hi all,

I'm a guy with engineering background. I'm preparing for June2010
level1 exam. So i'm starting this thread to post my queries hoping
that i'll get them solved :).

1. What is the diff between Risk free interest rate and Risk free
return rate ?

Thanks and Best Rgds
Lovkesh

[ashish jagani]

Nothing

Thanks & Regards
Ashish P.Jagani

I blog @ http://ajfundas.wordpress.com/

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[Akshay Gautam]

>
> 1. What is the diff between Risk free interest rate and Risk free
> return rate ?
>

Hi,
if there were any such difference there would be an arbitrage
opportunity

Cheers
Akshay

[anuj jain]

there is actually no difference between the two, they are used interchangeably..

from treasury point of view... its a Rsik free interest rate but as a  investor by investing in A risk free security i get a risk free rate of return.

 

 

they are used Interchangebly

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Regards,

Anuj Jain

[lovkesh k]

Hi All,

Thanks for your reply. Akshay can you elaborate a bit more on
arbitrage opportunity? How does the diff between the above two factors
can lead to arbitrage opportunity?

Best Rgds
Lovkesh