Risk-Free Interest Rate

Also found in: Wikipedia

0.01 sec.

Describes return available to an investor in a security somehow guaranteed to produce that return. The risk-free interest rate compensataes the investor for the temporary sacrifice of consumption.

Risk-Free Return

The return on any investment with such low risk that the risk is considered to not exist. A common example of a risk-free return is the return on a U.S. Treasury security. The risk-free return exists in order to compensate the investor for the temporary tying up of his/her capital, even though it is not put at risk. See also: Capital Allocation Line, riskless investment.

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.

?Page tools

Printer friendly
Cite / link

Feedback
Add definition

Mentioned in	?		References in periodicals archive	?		Financial browser	?		Full browser	?
Hedged portfolio Rho			To take advantage of the collective wisdom of the market in forecasting rate decisions, we will use a combination of long and short-term, risk-free interest rate assets to determine the cumulative movement the Reserve Bank of Australia (RBA) will make over the coming 12 months. Risk Appetite Stalls But the Dollar and Dow Maintain Trend Through ... by Mena Report It is also assumed, in common with Kruijt, that the average future inflation rate is equal to the average rental growth rate, so that NIY= risk-free interest rate + property net risk premium - expected growth, (23) or NIY= RFR + NRP - g. Risk premiums in cap rates of investment property by Van Wouwe, Martine; Berkhout, Tom M.; Tansens, Pol R. / Appraisal Journal The risk-free interest rate is usually based on one of the government treasuries (e. Risky business--health care finance and the VA by Bromley, Howard R. / Physician Executive			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 Risque exterieur			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 Risk-neutral Risk-Neutral Valuation Relationship

Financial Dictionary

Free Tools:	For surfers: Free toolbar & extensions \| Word of the Day \| Help For webmasters: Free content \| Linking \| Lookup box \| Double-click lookup

Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.