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Monday 23

October, 2017 6:54 PM


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Risk free rate

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What does it mean?

The risk free rate of return is the amount of interest an investor would receive from an investment without taking on any risk. Many analysts use short-dated Government bonds as the risk free rate.

 

 

 

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TheBull says...

When it comes to investing, there's no such thing as a risk-free investment. Everything in life has some level of risk attached to it - even breathing. Nevertheless, returns on Government bonds (regarded as pretty darn safe) are often referred to as risk free. .


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