Hi All, while reading portfolio management SFM i got a small doubt.
Can a risk free investment rate be in negative? say during the days of economic down turn or during deflation etc
1 Replies
Ashok Kumar Sharma
(Student)
(319 Points)
Replied 27 January 2014
Ofcourse, The interest rates can be negative in the event of deflation. Though such cases are rare but that does not mean it cannot happen. In this system, bank charges you certain rate for keeping your money. By interest rates i mean nominal interest rates. For more information:
https://en.wikipedia.org/wiki/Interest_rate#Negative_interest_rates
Recent Topics
- Avoiding tax audit in case of intraday equity loss
- Form 3CEAB
- Form 3CEAA and Form 3CEAB
- DIR 3 Web KYC
- Can i declare LTCG income as business income if I
- Stock entry in new software
- I have an EMI collection shop, what is its SAC cod
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
Related Threads
CAclubindia
