Risk-Free Return
Risk-Free Return is a theoretical return rate from an investment with zero risk rate, such as US Treasury bill.
Even if the risk free investments doesn't exist in real world, these short term securities issued by the stable government is considered risk free and is used as a benchmark.
Risk-Free Return is a minimum return any investor should expect, because, when there is a risk involved, potential returns must be greater than returns in risk-free assets.
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