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Risk free rate and the inter temporal rate of substitution


Can someone tell me how is the risk free rate is related to the inter temporal rate of substitution?

I know from the formula they are inversely related, but I dont understand the concept behind it.

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I think this thread can help you. In my first post I explain the relationship between ITRS and real risk free rate. If you want, we can elaborate further.


Las almas de todos los hombres son inmortales, pero las almas de los justos son inmortales y divinas.