Risk free rate - 2, 5, 10 or 30 years US treasury

[FrankCFA]

Which tenor is more suitable to be the risk-free rate - 2, 5, 10 or 30 years US treasury?

Thanks.

[spaghettios]

depends on the maturity of the cash flow you are discounting, it should be the same.

[FrankCFA]

If we value CAPM, tenor should be as long as possible?

[S2000magician]

It should be the rate for your expected holding period.

[FrankCFA]

@S2000magician

It should be the rate for your expexted holding period.

Thanks Magician!

[Banker99]

@FrankCFA

@S2000magician

It should be the rate for your expexted holding period.

Thanks Magician!

Magician should become a central banker

[S2000magician]

@Banker99

@FrankCFA

@S2000magician

It should be the rate for your expexted holding period.

Thanks Magician!

Magician should become a central banker

What makes you think I’m not already?

[L2_Again]

@FrankCFA

If we value CAPM, tenor should be as long as possible?

@S2000magician

It should be the rate for your expected holding period.

I don’t think that’s correct. If you’re choosing a riskfree rate to use in CAPM, you should choose a short-term t-bill rate.

[S2000magician]

@L2\_Again

@FrankCFA

If we value CAPM, tenor should be as long as possible?

@S2000magician

It should be the rate for your expected holding period.

I don’t think that’s correct. If you’re choosing a riskfree rate to use in CAPM, _ you should choose a short-term t-bill rate _.

Why?