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- Dictionaryrisk-free
adjective
- 1. free from risk; safe: "a risk-free offer"
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Jun 17, 2024 · The risk-free rate of return is the theoretical rate of return of an investment with zero risk. The risk-free rate represents the interest an investor would expect from an...
Aug 23, 2022 · Risk-free return is a theoretical return on an investment that carries no risk. The interest rate on a three-month treasury bill is often seen as a good example of a risk-free...
- Will Kenton
What is Risk-Free Rate? The risk-free rate of return is the interest rate an investor can expect to earn on an investment that carries zero risk. In practice, the risk-free rate is commonly considered to be equal to the interest paid on a 10-year highly rated government Treasury note, generally the safest investment an investor can make.
Mar 20, 2024 · The Risk Free Rate (rf) is the theoretical rate of return received on zero-risk assets, which serves as the minimum return required on riskier investments. The risk-free rate should reflect the yield to maturity (YTM) on default-free government bonds of equivalent maturity as the duration of the projected cash flows.
Aug 19, 2023 · The risk-free rate signals an investment that has no risk; the investor will not lose money. The rate is the main component of many famous theories, such as the capital asset pricing...
The risk-free rate of return, usually shortened to the risk-free rate, is the rate of return of a hypothetical investment with scheduled payments over a fixed period of time that is assumed to meet all payment obligations.
Jun 28, 2022 · The risk-free rate is the rate of return offered by an investment that carries zero risk. Every investment asset carries some level of risk, however small, so the risk-free...