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Riskless rate of return

    0.02 sec.
Riskless rate of return
The rate earned on a riskless asset.


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Since 2003, the riskless rate of return has been abnormally low as central banks kept overnight rates low for a long time after a brief deflation scare in the United States and a prolonged scare in Japan.
The accompanying chart compares at varying loss ratios the present value net ceded premium relative to the present value ceded losses at a riskless rate of return of 6% per annum.
Our dynamic model rebalances funds based on a combination of factors, including market volatility, portfolio volatility, portfolio return, and riskless rate of return.
 
 
 
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