The Memo by Howard Marks cover image

Coming Into Focus

The Memo by Howard Marks

CHAPTER

The Capital Market Line

The yield on the 30 day treasury bill is often referred to as the risk free rate. Low interest rates raise the d c f value of all investments. Investors shouldn't take risk without being compensated for doing so. As investments increase in terms of the level of uncertainty, an incremental risk premium should be incorporated into potential returns.

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