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What does RFR stand for?

RFR stands for Risk-Free Rate (investing)

This definition appears frequently and is found in the following Acronym Finder categories:

  • Business, finance, etc.

See other definitions of RFR

Other Resources:
We have 65 other meanings of RFR in our Acronym Attic

Samples in periodicals archive:

the desirability of any investment can be simply stated as the expected excess return over the risk-free rate less a term that represents the compensation that the investor requires to take the risk.
Risk-free rate: If one assumes the risk-free rate to rise independently of the underlying security's price, it will increase the value of a call option and decrease the value of a put option.
The cost of equity is determined by a formula that includes: a risk-free rate of interest such as the London Interbank Offered Rate (LIBOR) or a one-year Treasury bill rate; a factor designed to account for market risk; this is referred to as the Ibbotson premia, (Google Ibbotson for an understanding of what this factor is and how it's derived); and the beta.
Zwecher argued that if stocks were a cinch to grow over the long run, then the cost of hedging against the risk of equities under performing the risk-free rate would decline over time.