Risk-Free


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Related to Risk-Free: Risk Free Asset

Risk-Free

Describing a transaction or investment in which 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 risk-free investments because the United States government is considered the best possible issuer. Critics contend that there is no such thing as a risk-free investment because, in theory, even the US government could default. However, risk-free investments have such a low level of risk that it may be ignored. Risk-free investments usually have a low rate of return and, as a result, are exposed to inflation risk.
References in periodicals archive ?
First and foremost, the working group has a mandate to identify and develop an adoption plan for a risk-free overnight rate that can serve as a basis for an alternative to the benchmarks currently used in the euro area.
However, and I bring up this complicated issue with trepidation, it does seem possible that in a world with both lower growth and a lower risk-free rate that the risk premium might also drop a little.
In our view, risk looks attractive and risk-free looks unusually risky for intermediate to long-term investors.
We need to address the risk-free, compensation culture and the excessive costs it brings with it.
Any danger of injury is therefore ruled out, allowing the LC to be utilized risk-free in publicly accessible applications such as Fiber-to-the-Desk and Fiber-to-the-Home.
For insurers' liabilities, this would mean recognizing at least two factors: first, changes in risk-free rate levels, and second, in the aftermath of a significant insurance-oriented tail event (insurer's version of the credit crisis), the additional costs associated with the need to carry more capital at a higher cost.
Your 100% risk-free guarantee is for a quality work product, not that your opinion will be whatever the attorney wants it to be.
Paying the balance on a credit card with a 12% annual interest rate is the same as receiving an annual after-tax rate of return of 12% on a risk-free investment.
It is designed to provide administrators, IT personnel and instructors with a risk-free, no-cost way to evaluate the latest Sakai v2.
A pricing model estimates fair value using six factors--stock price, exercise price, volatility, risk-free interest rate, dividends and option term--that interact to create value.