Corporate and Risk-free asset: Difference between pages
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''Investment management - risk appetite - flight to quality - rates of return - risk-free rate of return - risk assets.'' | |||
For practical investment management and portfolio management purposes, a risk-free asset is considered to be one on which the expected rate of investment return is so likely to be achieved, that it can be treated as near-enough risk free for the purpose. | |||
The usual example is short-dated debt obligations of a low-risk domestic central government. | |||
For example in the United States, short-dated obligations of the US Treasury. | |||
In this context, all assets that are not risk-free assets, are classed as ''risk assets''. | |||
The exact boundary between risk assets and risk-free assets can vary, depending on the purpose of the classification. | |||
== See also == | == See also == | ||
* [[ | * [[Benchmark]] | ||
* [[Capital asset pricing model]] | |||
* [[Credit spread ]] | |||
* [[Expected rate of return]] | |||
* [[Flight to quality]] | |||
* [[Gilts]] | |||
* [[Interest rate risk]] | |||
* [[Investment management]] | |||
* [[LIBOR]] | |||
* [[Market risk premium]] | |||
* [[Portfolio]] | |||
* [[Rate of return]] | |||
* [[RFR]] | |||
* [[Risk appetite]] | |||
* [[Risk asset]] | |||
* [[Risk-free rate of return]] | |||
* [[Risk-free rates]] | |||
* [[Risk-off]] | |||
* [[Risk-off asset]] | |||
* [[Risk-on]] | |||
* [[Treasury]] | |||
[[Category:Accounting,_tax_and_regulation]] | |||
[[Category:Financial_products_and_markets]] | |||
[[Category:Risk_frameworks]] | |||
Latest revision as of 05:49, 10 February 2024
Investment management - risk appetite - flight to quality - rates of return - risk-free rate of return - risk assets.
For practical investment management and portfolio management purposes, a risk-free asset is considered to be one on which the expected rate of investment return is so likely to be achieved, that it can be treated as near-enough risk free for the purpose.
The usual example is short-dated debt obligations of a low-risk domestic central government.
For example in the United States, short-dated obligations of the US Treasury.
In this context, all assets that are not risk-free assets, are classed as risk assets.
The exact boundary between risk assets and risk-free assets can vary, depending on the purpose of the classification.
See also
- Benchmark
- Capital asset pricing model
- Credit spread
- Expected rate of return
- Flight to quality
- Gilts
- Interest rate risk
- Investment management
- LIBOR
- Market risk premium
- Portfolio
- Rate of return
- RFR
- Risk appetite
- Risk asset
- Risk-free rate of return
- Risk-free rates
- Risk-off
- Risk-off asset
- Risk-on
- Treasury
