Term
Risk-free rate
The return on an investment considered practically certain to pay you back: in practice, government debt in its own currency, such as US Treasury bonds for dollars or CETES and Mexican government bonds for pesos. It is the floor every riskier investment is measured against.
In pesos: If CETES paid, say, 10% a year, a stock you expect to return 11% would be paying you just 1 extra point for all its risk.
Where to go deeper
2/4 6 min Read What you actually buy when you buy a share A share is a piece of a company, not a number on a screen. Where its value comes from, why the price moves, what a dividend is, and why it is not a lottery ticket.More terms on the same topic
Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.