Riskless rate of return

The rate earned on a riskless asset. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • riskless rate of return — The rate earned on a riskless asset. Bloomberg Financial Dictionary …   Financial and business terms

  • Excess return on the market portfolio — The difference between the return on the market portfolio and the riskless rate. The New York Times Financial Glossary …   Financial and business terms

  • excess return on the market portfolio — Difference between the return on the market portfolio and the riskless rate. Bloomberg Financial Dictionary …   Financial and business terms

  • Risk-Adjusted Return On Capital - RAROC — An adjustment to the return on an investment that accounts for the element of risk. Risk adjusted return on capital (RAROC) gives decision makers the ability to compare the returns on several different projects with varying risk levels. RAROC was …   Investment dictionary

  • Implied volatility — The expected volatility in a stock s return derived from its option price, maturity date, exercise price, and riskless rate of return, using an option pricing model such as Black/Scholes. The New York Times Financial Glossary * * *    The… …   Financial and business terms

  • implied volatility — Volatility of a financial instrument that is imputed by subtracting all of the other factors thought to contribute to the price of an option. The amount remaining after those subtractions is attributed to volatility. Implied volatility is not the …   Financial and business terms

  • Black–Scholes — The Black–Scholes model (pronounced /ˌblæk ˈʃoʊlz/[1]) is a mathematical model of a financial market containing certain derivative investment instruments. From the model, one can deduce the Black–Scholes formula, which gives the price of European …   Wikipedia

  • Investment risk — On ground of assurance of the return, there are two kinds of Investments Riskless and Risky. Riskless investments are guaranteed, but since the value of a guarantee is only as good as the guarantor, those backed by the full faith and confidence… …   Wikipedia

  • Forward contract — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • Balance of payments — In economics, the balance of payments, (or BOP) measures the payments that flow between any individual country and all other countries. It is used to summarize all international economic transactions for that country during a specific time period …   Wikipedia

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