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

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Risk Free Rate. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
August 16, 2022 https://payrollheaven.com/define/risk-free-rate/.
Chicago Manual of Style (CMS):
Risk Free Rate. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/risk-free-rate/ (accessed: August 16, 2022).
American Psychological Association (APA):
Risk Free Rate. PayrollHeaven.com. Retrieved August 16, 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.