risk-free return

Definition

A theoretical interest rate that would be returned on an investment which was completely free of risk. The 3-month Treasury Bill is a close approximation, since it is virtually risk-free.

Cite this definition


Related Terms

risk premium, equity risk premium

'risk-free return ' appears in the definitions of these terms on BusinessDictionary.com

risk premium

Related Research Articles from the InvestorGuide.com University

Introduction to Banking
Learn about the basics of banking, as well as alternatives to banks, such as credit unions, brokerages and mutual funds.

Types of Accounts
Find out about the different types of bank accounts that are available, including savings accounts, checking accounts, money market deposit accounts (MMDAs) and certificates of deposit (CDs).

Online Banking
How can you find the best online bank for you? Within the last decade, online banking has exploded in popularity, and revolutionized the industry, but some banks offer better services than others. Here we look at some things you should consider when you choose an online bank, including account access, security, online bill paying, account aggregation and fees.


Featured Sponsor


Give this definition a rating from 1 to 5 (5 being the best)...
1    2    3    4    5    



Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Add this Glossary to your Site | Bookmark InvestorWords.com
Home | Terms by Subject | Keyword Advertising | About Us | Contact Us
Work for InvestorWords.com
BusinessDictionary.com | InvestorGuide.com | WebFinanceInc.com
Disclaimer and Copyright©

Copyright©1997-2008 by WebFinance, Inc. All Rights Reserved.
Unauthorized duplication, in whole or in part, is strictly prohibited.