risk-free rate


risk-free rate
The rate of return on an investment that has no risk. The return on US and UK Treasury bills is often regarded as a very close approximation to this rate. The risk-free rate is an important concept in the capital asset pricing model

Big dictionary of business and management. 2014.

Look at other dictionaries:

  • risk free rate — nerizikinga palūkanų norma statusas T sritis turto vertinimas apibrėžtis Nerizikingų investicijų grąžos norma rinkoje. atitikmenys: angl. risk free rate ryšiai: susijęs terminas – grąžos norma šaltinis Tarptautiniai vertinimo standartai (2011) …   Lithuanian dictionary (lietuvių žodynas)

  • Risk-free rate — The rate earned on a riskless asset. The New York Times Financial Glossary …   Financial and business terms

  • risk-free rate — The rate earned on a riskless asset. Bloomberg Financial Dictionary …   Financial and business terms

  • risk free rate — interest rate for a property that has certain profit …   English contemporary dictionary

  • Risk-Free Rate Of Return — The theoretical rate of return of an investment with zero risk. The risk free rate represents the interest an investor would expect from an absolutely risk free investment over a specified period of time. In theory, the risk free rate is the… …   Investment dictionary

  • risk-free rate of return — The rate of return on an investment that has no risk. The return on US and UK Treasury bills is often regarded as a very close approximation to this rate. The risk free rate is an important concept in the capital asset pricing model …   Accounting dictionary

  • Risk-Free Rate Puzzle - RFRP — An anomaly in the difference between the lower historic real returns of government bonds compared to equities. This puzzle is the inverse of the equity premium puzzle, and looks at the disparity from the perspective from the lower returning… …   Investment dictionary

  • Risk-free interest rate — The risk free interest rate is the interest rate that it is assumed can be obtained by investing in financial instruments with no default risk. However, the financial instrument can carry other types of risk, e.g. market risk (the risk of changes …   Wikipedia

  • Risk-Free Return — The theoretical rate of return attributed to an investment with zero risk. The risk free rate represents the interest on an investor s money that he or she would expect from an absolutely risk free investment over a specified period of time. In… …   Investment dictionary

  • Risk-Free Asset — An asset which has a certain future return. Treasuries (especially T bills) are considered to be risk free because they are backed by the U.S. government. Because they are so safe, the return on risk free assets is very close to the current… …   Investment dictionary


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