Risk free rate
The risk free rate is the rate of return one can generate without taking on risk of losing money.
In practice, the risk free rate is simply the rate of return on United States Treasury bonds.
Related Fool Articles
Related Community Blogs
Recent Mentions on Fool.com
- Facebook?s 'Nearby Friends' -- 3 Critical Questions
- 1 Strategy That May Allow Walgreen to Surpass CVS and Crush Rite Aid
- Why Distribution Growth Matters When Investing in MLPs
- 3 Winners in Discount Retail: Costco, TJX, and Amazon.com
- The Latest Turnaround in Teen Retail Could Be Underway
- How Much of a Risk Premium Should Goldcorp Pay for Osisko?