Take the 2-minute tour ×
Quantitative Finance Stack Exchange is a question and answer site for finance professionals and academics. It's 100% free, no registration required.

Risk-free rate of return should equal the expected long-run growth rate of the economy with an adjustment for short-run liquidity.

What is meant by the last phrase, "adjustment for short-run liquidity"?

share|improve this question
    
Can you give a reference for this? Did you read this somewhere? –  Christian Fries May 5 '13 at 5:30
    
yes!..read it in "Analysis of Investments and Management of Porfolio" by Reily and Brown –  Puneet Arora May 5 '13 at 6:58
add comment

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.

Browse other questions tagged or ask your own question.