Risk-Free Return financial definition of Risk-Free Return. Risk-Free Return finance term by the Free Online Dictionary.

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.

risk-free return

The annualized rate of return on a riskless investment. This is the rate against which other returns are measured. See also excess return.

Risk-free return. When you buy a US Treasury bill that matures in 13 weeks, you're making a risk-free investment in the sense that there's virtually no chance of losing your principal (since the bill is backed by the US government) and no threat from inflation (since the term is so short).

Your yield, or the amount you earn on that investment, is described as risk-free return. By subtracting the risk-free return from the return on an investment that has the potential to lose value, you can figure out the risk premium, which is one measure of the risk of choosing an investment other than the 13-week bill.

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Black and Scholes Model Black Scholes Model Black-Scholes Option-Pricing Model Excess Return Excess Returns Jensen Index Jensen's Index Neutral Hedge Program Trading Risk Premium Risk-Free Interest Rate risk-free rate Risk-Free Rate of Return Riskless Rate Riskless Transaction Security Characteristic Line Sharpe Performance Measure Sharpe Ratio Simultaneous Transaction	Make sure that the minimum hurdle rate is a reasonably risk-free return of around 10-15 per cent per annum. Profiting from PMS by Business Today More (New Delhi, India) This prohibition of a risk-free return and permission of trading marked the financial activities in an Islamic system of real assets backed with the ability to cause value addition. Can Islamic banking be the cure? by Daily News Egypt (Egypt) This made the opportunity all the more rewarding, borrowing at 0 per cent and offsetting against a mortgage rate of 5 per cent made obvious sense, a risk-free return and no tax to pay. Banks share struggling customers' credit details by guardian.co.uk / guardian.co.uk	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 Risque-Pays Risultato finale Ritenuta alla fonte	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 Risk-prone Risk-Reducing Salpingo Oophorectomy Risk-Reduction Mastectomy Risk-Related Medical History Risk-return spectrum Risk-return trade-off Risk-Return Trade-Offs Risk-return tradeoff Risk-Return Tradeoffs Risk-Reward Basis

Mentioned in

References in periodicals archive

Financial browser

Full browser

Black and Scholes Model
Black Scholes Model
Black-Scholes Option-Pricing Model
Excess Return
Excess Returns
Jensen Index
Jensen's Index
Neutral Hedge
Program Trading
Risk Premium
Risk-Free Interest Rate
risk-free rate
Risk-Free Rate of Return
Riskless Rate
Riskless Transaction
Security Characteristic Line
Sharpe Performance Measure
Sharpe Ratio
Simultaneous Transaction

Make sure that the minimum hurdle rate is a reasonably risk-free return of around 10-15 per cent per annum.

Profiting from PMS by Business Today More (New Delhi, India)

This prohibition of a risk-free return and permission of trading marked the financial activities in an Islamic system of real assets backed with the ability to cause value addition.

Can Islamic banking be the cure? by Daily News Egypt (Egypt)

This made the opportunity all the more rewarding, borrowing at 0 per cent and offsetting against a mortgage rate of 5 per cent made obvious sense, a risk-free return and no tax to pay.

Banks share struggling customers' credit details by guardian.co.uk / guardian.co.uk

Risk Premium Approach