risk-free return


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.

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You should always be looking for anything that can give you a nice risk-free return if you can find it.

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Individuals who are risk adverse are usually interested in risk-free return items. Treasury bills are therefore a good investment for them.

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My boss asked me to shift all of our investments into government bonds because we needed a risk-free return while the stock market went down.

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