BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
Question
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Increase in time value of money


Increase or Decrease in time value of money


Decline in time value of money


Increase and Decrease in time value of money

Detailed explanation1: The riskfree rate of return is the theoretical rate of return of an investment with zero risk. The riskfree rate represents the interest an investor would expect from an absolutely riskfree investment over a specified period of time.
Detailed explanation2: The riskfree rate of return is the interest rate an investor can expect to earn on an investment that carries zero risk. In practice, the riskfree rate is commonly considered to equal to the interest paid on a 3month government Treasury bill, generally the safest investment an investor can make.
Detailed explanation3: What is the RiskFree Rate of Return? A riskfree rate is the minimum rate of return expected on investment with zero risks by the investor. It is the government bonds of welldeveloped countries, either US treasury bonds or German government bonds.