Overview

risk-free rate


Show Summary Details

Quick Reference

The rate of return on an investment that has no risk. The return on US and UK Treasury bills is often regarded as a very close approximation to this rate. The risk-free rate is an important concept in the capital asset pricing model.

Subjects: Financial Institutions and Services — Accounting.


Reference entries

Users without a subscription are not able to see the full content. Please, subscribe or login to access all content.