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What is the Risk-Free Rate and How Can It Be Used to Guide Your Investment Decisions

In investment, there is this term called risk-free rate of return.  In a relatively stable economic environment, the risk-free rate offers the minimum return that one can yield without taking on any risk (ie, a risk-free investment).  But what is it really and how can it be used by a stock investor to make investment decisions?  Let’s find out.

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