Is risk free rate means nominal risk free rate? So, RFR = Nominal RFR? I understood the following as Nominal RFR Nominal risk free rate = (!+ Real RFR)(1+ Inflation premium) -1 I found the following as expected return k0 = Risk free rate + Beta(Market rate –Risk Free rate) Got confused if Risk free rate and Nominal risk free rate are one and the same

Yes, unless otherwise mentioned, RFR is Nominal and not real

cool. Thanks a lot for reply

> Yes, unless otherwise mentioned, RFR is Nominal and not real In fact all rates are default nominal: interest, CPI, change in GDP, expected return, …