Answer: Real risk-free interest rate.

The real risk-free interest rate represents time preference, or the degree to which consumers prefer consumption in the present to an equal amount of consumption in the future. Other measures of return include time preference, but they also reflect other factors, such as risk or expected inflation. **Key Points:** - **Total rate of return**: Includes time preference plus risk premium and other factors - **Nominal risk-free interest rate**: Includes time preference plus expected inflation - **Real risk-free interest rate**: Pure time preference only (no risk, no inflation) **CFA Reference**: Module 1.1, LOS 1.a

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