Riskless or risk-free asset financial definition of Riskless or risk-free asset
https://financial-dictionary.thefreedictionary.com/Riskless+or+risk-free+asset
Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary 12,666,913,353 visitors served
Search / Page tools
?
Keyboard
  • A
  • A
  • A
  • A
Language:
Share on Facebook Twitter
Get our app
Flashcards ?
My bookmarks ?
+ Add current page to bookmarks
9
Register Log in
Sign up with one click:
  • Facebook
  • Twitter
  • Google
Share on Facebook
Get
our app
  • Dictionary
  • Thesaurus
  • Medical
    Dictionary
  • Legal
    Dictionary
  • Financial
    Dictionary
  • Acronyms
  • Idioms
  • Encyclopedia
  • Wikipedia
    Encyclopedia
Tools
  • A
  • A
  • A
  • A
Language:
Mobile Apps:
  • apple
  • android
For surfers:
  • Free toolbar & extensions
  • Word of the Day
  • Help
For webmasters:
  • Free content
  • Linking
  • Lookup box
Close

Riskless or risk-free asset

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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Risk-Free Asset

An asset in which the return is known with certainty. The certainty generally comes from a supreme amount of confidence in the issuer of the asset; for example, Treasury securities are considered risk-free because the United States government is considered the best possible issuer. Critics contend that there is no such thing as a risk-free asset because, in theory, even the US government could default. However, risk-free assets have such a low level of risk that it may be ignored. Nonetheless, risk-free assets usually have a low rate of return, and, as a result, even these are exposed to inflation risk.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


Want to thank TFD for its existence? Tell a friend about us, add a link to this page, or visit the webmaster's page for free fun content.

Link to this page:

  • Facebook
  • Twitter
Feedback
Flashcards & Bookmarks ?
Please log in or register to use Flashcards and Bookmarks. You can also log in with
  • Facebook
  • Twitter
  • Google
Flashcards ?
My bookmarks ?
+ Add current page to bookmarks
Financial browser ?
  • ▲
  • 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 return
  • Riskless arbitrage
  • riskless investment
  • Riskless or risk-free asset
  • Riskless rate
  • Riskless rate of return
  • riskless transaction
  • Risk-Loving
  • Risk-neutral
  • Risk-prone
  • Risk-return tradeoff
  • Risk-return trade-off
  • Risk-reward ratio
  • Risks and Opportunities
  • Risk-Weighted Assets
  • Risky asset
  • Risky Operation
  • River Measure
  • Riyal
  • RMBS
  • Ro
  • ROA
  • road congestion
  • Road Haulage Association Limited
  • road show
  • Robber Barons
  • Robbery
  • Robert Ng
  • Robert Rhea
  • ▼
Full browser ?
  • ▲
  • riskiness
  • riskiness
  • riskinesses
  • riskinesses
  • risking
  • risking
  • risking
  • risking
  • risking
  • risking
  • risking
  • risking it on
  • risking life and limb
  • risking neck
  • risking neck
  • risking neck
  • risking neck
  • risking neck
  • risking neck
  • risking on
  • risking something on
  • risking them on
  • riskless
  • 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
  • risklessly
  • risklessness
  • RiskMetrics Group, Inc.
  • RiskMetrics Markup Language
  • risks
  • risks
  • risks
  • risks
  • risks
  • risks
  • Risks & Opportunities
  • Risks and Opportunities
  • risks it on
  • risks life and limb
  • risks neck
  • risks neck
  • risks neck
  • risks neck
  • risks neck
  • Risks of disease
  • ▼
  • Facebook Share
  • Twitter
CITE
Site: Follow:
  • Facebook
  • Twitter
  • Rss
  • Mail
Share:
  • Facebook
  • Twitter
  • LinkedIn
  • Mail
Open / Close
More from Financial Dictionary
Mobile Apps
  • Apple
  • Android
  • Kindle
  • Windows
  • Windows Phone
Free Tools
For surfers:
  • Free toolbar & extensions
  • Word of the Day
  • Word Finder
  • Help
For webmasters:
  • Free content
  • Linking
  • Lookup box
  • Terms of Use
  • Privacy policy
  • Feedback
  • Advertise with Us
Copyright © 2003-2021 Farlex, Inc
Disclaimer

All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.