/biz/ - Business & Finance

>>51310361
no. the efficient rate is based on the minimum natural profit which people would be willing to take. in a perfectly efficient world, risk, desirability are still priced in. a rocket launch company would still be expected to have a higher natural profit than someone who make tooth brushes, due to a risk premium. a company that cleans port-o-potty would be expected to return a higher profit than a gold course, because the nature of the work is unsavory.

natural profit is the minimum rate people can be expected to get on their money before switching to something else, and that differs for different reasons even in a hypothetically perfectly efficient market.