Riskless Investment

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Riskless Investment

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

riskless investment

An investment with a certain rate of return and no chance of default. Although various investments (for example, savings accounts and certificates of deposit at insured institutions) meet these requirements, a Treasury bill is the most common example of a riskless investment.

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Partial Prepayments Program Trading Risk-Free Interest Rate risk-free rate Risk-Free Rate of Return Risk-Free Return Riskless Rate Treynor Index Treynor Performance Measure			In the investment world, proposing a riskless investment with high rewards is tantamount to selling a perpetual motion machine or a pill that turns water into gasoline. Turning pariahs into princes by Vance, Beaumont / Risk & Insurance Abel, NBER and University of Pennsylvania, "The Social Security Trust Fund, the Riskless Investment Rate, and Capital Accumulation" (NBER Working Paper No. Risk aspects of investment-based social security reform by NBER Reporter By eliminating targeted tax incentives for savings and investment, that act eliminated distinctions on income from risk and riskless investments. Time to retarget the individual investor by Mahoney, William F. / Directors & Boards			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 Ritenuta d'acconto Ritirare i titoli Riyal RMBS RO ROA Road Show Robber Barons Robbery			riskier riskier riskiest riskiest riskiest riskiest riskiest riskily riskily riskiness riskiness riskiness riskiness riskiness risking risking risking risking risking risking risking neck risking neck risking neck risking neck risking neck riskless riskless Riskless arbitrage Riskless Asset Riskless Assets Riskless Investment Riskless Investments Riskless or risk-free asset Riskless or Risk-Free Assets Riskless Profit Riskless Profits Riskless rate Riskless rate of return Riskless Rates Riskless Return Riskless Returns Riskless transaction Riskless Transactions risklessness RiskMetrics Group, Inc. RiskMetrics Markup Language risks risks risks risks risks risks Risks & Opportunities Risks and Opportunities risks neck risks neck risks neck risks neck risks neck Risks of disease Risks of disease

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