The Risk-free Rate and the Risk-adjusted Growth Rate

I thank Ravi Bansal, Lars Peter Hansen, Lorenzo Garlappi, Nicolae Garleanu, Francois Gourio, Martin Lettau, Erik Loualiche, Rodolfo Prieto, Dejanir Silva, Mindy Xiaolan and conference and seminar participants at Arizona State University, Cleveland Fed, City University of Hong Kong, Colorado Finance Summit, Hong Kong University, Hong Kong University of Science and Technology, Insead, London Business School, Macro-Finance Society, Oslo Center for Advanced Studies, SFS Cavalcade, University of British Columbia, University of California Los Angeles, Utah Winter Finance Conference, and Western Finance Association for useful comments. A previous version of the paper was circulated under the title ``Growth-Indexed Securities''. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.