risk-free return

risk-free return definition - finance
A theoretical investment that is free of risk. Usually the three-month U.S. Treasury bill is used as a benchmark for a risk-free return. Although no financial investment is completely risk-free, U.S. Treasuries are considered to come the closest because they are backed by the full-faith and credit of the U.S. Government.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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