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prendergastfamily
Risk-Free Investments?

In Ratios/Interpretation of a/cs, 'risk-free investments' are mentioned under Profitability. What is it and how do you calculate it?


4 Comments
ciaransheil
just say 1-2 % its cash deposit rates
efarrell83
Risk free investments are banks/building socities/credit unions etc... Rates vary in these institutions thats why you say circa. 2%.
Meall
Meall
The idea behind them is that you get a minimal return (2-3%) with next to no chance of losing your money. So, if your Return on Capital Employed is below that margin, it's bad because your business does have risks and therefore must have high enough return to justify the risks. Otherwise, investors would be better off just putting their money in a savings account.
prendergastfamily
sound bois
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