Risk-Free Rate
The Risk-Free rate is a theoretical return for an investment with no risk.
What we Use for The Risk-Free Rate
-
For Canadian Stocks, we use the FTSE Canada 91 day T-bill
-
For US Stocks, we use the FTSE 3M Treasury bill
-
For Funds, we use the relevant T-Bill provided by our data providers.
For further reading, Investopedia is a great resource with video explainers. The page on risk-free rate can be found here.