Risk-Free Asset

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Risk-free asset

An asset whose future normal return is known today with certainty.

Risk-Free Asset

An asset in which the return is known with certainty. The certainty generally comes from a supreme amount of confidence in the issuer of the asset; for example, Treasury securities are considered risk-free because the United States government is considered the best possible issuer. Critics contend that there is no such thing as a risk-free asset because, in theory, even the US government could default. However, risk-free assets have such a low level of risk that it may be ignored. Nonetheless, risk-free assets usually have a low rate of return, and, as a result, even these are exposed to inflation risk.

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Activo libre de riesgo Capital Allocation Decision Capital Market Line capital-asset pricing model CML Complete Portfolio Constant Proportion Portfolio Insurance Risk Premium risk-free rate Riskless or Risk-Free Asset Separation Property Treynor Performance Measure Two-Fund Separation Theorem Zero-Beta Portfolio			To reach the conclusion, Northwestern students were given real money to make a series of investments, in each trial deciding how to allocate money between a risky and a risk-free asset. Financial risk-taking lies in the genes by Asian News International Of course, there is a lot of sidelined capital in Treasuries, money markets and other relatively risk-free assets that can continue to feed the speculative rally; but eventually, risk will outrun the reasonable expectation of returns and the tap for capital will be turned off. Risk Appetite Buoyant in Currencies and Stocks, Yet Momentum Still ... by Mena Report Stanford professor emeritus and Nobel Prize winner William Sharpe agrees, advocating "a minimum subsistence level equal to the amount provided by a risk-free asset," adding annuities should be considered explicitly" for this role. Retirement income strategy with a solid floor by Carter, John / Boomer Market Advisor			Risk Hedge Risk Indexes Risk Lover risk management Risk Manager Risk Neutral risk of loss Risk Premium Risk Premium Approach Risk Profile Risk Ratio Risk Reversal Risk seeker Risk Taker Risk Tolerance Risk Transfer risk versus reward Risk-Adjusted Discount Rate Risk-Adjusted Performance Risk-adjusted profitability Risk-Adjusted Return Risk-Averse Risk-based capital ratio risk-based capital requirement Risk-Free Risk-Free Asset Risk-Free Interest Rate risk-free rate Risk-Free Rate of Return Risk-Free Return Risk-Loving Risk-Neutral Risk-Prone Risk-Return Trade-Off Risk-Return Tradeoff Risk-Reward Ratio Risk-Weighted Assets Riskless Arbitrage Riskless Investment Riskless or Risk-Free Asset Riskless Rate Riskless rate of return Riskless Transaction Risks and Opportunities Risky Asset Risky Operation Risparmiare Risque d'insolvabilite Risque de change Risque de penurie Risque de ralentissement			Risk-Based Corrective Action Risk-Based Decision Analysis Risk-Based Disposal Approval Risk-Based End States Risk-Based Exposure Limit Risk-Based Haircuts Risk-Based Inspection Risk-Based Inspection and Maintenance Risk-based Inspection Guide Risk-Based Inspection Planning Risk-Based Land Management Risk-Based Performance Standards Risk-based pricing Risk-Based Process Safety Risk-Based Quality Management Risk-Based Remediation Goal Risk-Based Tank Inspection Risk-based Testing risk-based work plan Risk-benefit analysis Risk-Capital Research and Technology Risk-factor Risk-factor Risk-factor risk-free risk-free Risk-Free Arbitrage Risk-Free Asset Risk-Free Assets Risk-free interest rate Risk-Free Interest Rates Risk-Free Investment Risk-Free Investments Risk-Free Profit Risk-Free Profits Risk-free rate Risk-free rate Risk-Free Rate of Return Risk-Free Rates Risk-Free Rates of Return Risk-free return Risk-Free Returns Risk-Free Securities Risk-Free Security Risk-Free Transaction Risk-Free Transactions Risk-Informed Risk-Informed Inservice Inspection Risk-Informed Licensing Panel Risk-Informed Regulation Implementation Plan Risk-Informed, Performance-Based Regulation Risk-loving Risk-Need-Responsivity

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