In the realm of finance, there exists a concept known as the "risk-free rate." This refers to a theoretical scenario in which investors are willing to take on risk without requiring any compensation for it. In other words, they are willing to invest their money without demanding a higher return. This idea is often used as a benchmark for evaluating the performance of other investments. However, in reality, there is always some level of risk involved in investing. The existence of a risk-free rate is a key concept to understand when navigating the world of finance.
