Risk Free Rate

Business, Legal & Accounting Glossary

Definition: Risk Free Rate


Risk Free Rate


Full Definition of Risk Free Rate


The risk-free rate is the rate of return one can generate without taking on the risk of losing money.

In practice, the risk-free rate is simply the rate of return on United States Treasury bonds.


Related Phrases


Capital asset pricing model
Discount rate
Hurdle rate
Opportunity cost


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Chicago Manual of Style (CMS):
Risk Free Rate. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/risk-free-rate/ (accessed: January 19, 2022).
American Psychological Association (APA):
Risk Free Rate. PayrollHeaven.com. Retrieved January 19, 2022
, from PayrollHeaven.com website: https://payrollheaven.com/define/risk-free-rate/

Definition Sources


Definitions for Risk Free Rate are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 29th November, 2021 | 0 Views.