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In Search of Safe Havens: The Trust Deficit and Risk-free Investments!

Musings on Markets

The first is that there is no risk that the issuer of the security will default on their contractual commitments. As the risk-free rate rises, expected returns on equities will be pushed up, and holding all else constant, stock prices will go down., and the reverse will occur, when risk-free rates drop.

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Transcript: Savita Subramanian

Barry Ritholtz

And so I went to business school, I decided to go to business school, get that formal education. But now we’re back to a more normal hurdle rate. 5% interest rates is not super high. I don’t bring my ID to the office, and I have to get the security guard to look me up in the system. That’s right.

Finance 57