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Riskless or Risk-Free Asset

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Riskless or risk-free asset
An asset whose future return is known today with certainty. The risk-free asset is commonly defined as short-term obligations of the US government.

Riskless or Risk-Free Asset
An asset or investment in which the return is guaranteed. A riskless asset has such a good reputation that its return is believed to be known without a doubt. Generally speaking, a riskless asset refers to a U.S. Treasury security because the U.S. government has such a good credit rating that, short of its collapse, it will always repay its debts.


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