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@annmlipton

For those who aren't finance wonks:

Risk-free rate is a theoretical concept that sets the lower bound on the cost of capital (e.g., cost to borrow or finance anything). As the hivemind tells us:

"The interest rate on a three-month US Treasury bill (T-bill) is often used as the risk-free rate for US-based investors. The three-month US Treasury bill is a useful proxy because the market considers there to be virtually no chance of the US government defaulting on its obligations."