Riskless or risk-free asset

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 U.S. government.

Post sponsored by:

Risk-free rate

Risk-free rate

Risk-free rate

The rate earned on a riskless asset.

Post sponsored by:

Risk-free asset

Risk-free asset

Risk-free asset

An asset whose future return is known today with certainty.

Post sponsored by:

Risk-adjusted return

Risk-adjusted return

Risk-adjusted return

Return earned on an asset normalized for the amount of risk associated with that asset.

Post sponsored by:

Risk-adjusted profitability

Risk-adjusted profitability

Risk-adjusted profitability

A probability used to determine a “sure” expected value (sometimes called a certainty equivalent) that would be equivalent to the actual risky expected value.

Post sponsored by:

Risk prone

Risk prone

Risk prone

Willing to pay money to transfer risk from others.

Post sponsored by:

Risk premium approach

Risk premium approach

Risk premium approach

The most common approach for tactical asset allocation to determine the relative valuation of asset classes based on expected returns.

Post sponsored by:

Risk premium

Risk premium

Risk premium

The reward for holding the risky market portfolio rather than the risk-free asset. The spread between Treasury and non-Treasury bonds of comparable maturity.

Post sponsored by: