Riskless rate of return
The rate earned on a riskless asset.
Similar financial terms
Riskless arbitrage
The simultaneous purchase and sale of the same asset to yield a profit.
Riskless rate
The rate earned on a riskless investment, typically the rate earned on the 90-day US Treasury Bill.
Riskless rate of return ...
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.
Convertible arbitrage A practice, usually of buying a convertible bond and shorting a percentage of the equivalent underlying common shares, to create a positive cash flow position (with expected returns above the riskless rate) in a static ...
Related: cheapest to deliver issue 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.
Excess return on the market portfolio Difference between the return on the market portfolio and the riskless rate. Excess returns Difference between asset return and riskless rate.
Difference between the return on the market portfolio and the riskless rate.
Excess returns
Difference between asset return and riskless rate. Sometimes confused with abnormal returns, returns in excess of those required by some asset pricing model.
1 The other advantage of ratings is that they can be used to estimate default spreads over a riskless rate.
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. Import/export letters of credit ...
EXCESS RETURNS - Difference between an asset's return and the riskless rate. Sometimes confused with ab...
EXCESS SERVICING - A term used in asset backed securities to describe the amount by which the yield fro...
The difference between the return on the market portfolio and the
riskless rate.
Factor portfolio
A well-diversified portfolio constructed to have a beta of 1.0 on one factor and a beta of
zero on any other factors.
The difference between asset return and riskless rate. Sometimes confused with abnormal returns, returns in excess of those required by some asset pricing model.
Exchange ...
A practice, usually of buying a convertible bond and shorting a percentage of the equivalent underlying common shares, to create a positive cash flow position (with expected returns above the riskless rate) in a static environment and benefits from ...
Excess returns
Difference between asset return and riskless rate. Sometimes confused with abnormal returns, returns in excess of those required by some asset pricing model.
The risk premiums relate an investment to the market's risk-free or riskless rate of return. Typically, this risk-free rate is viewed in terms of principal safety for short term U.S. government obligations.
When lending and borrowing possibilities are considered, the capital market line becomes the EFFICIENT FRONTIER starting from the riskless rate for the point of tangency on the efficient frontier of portfolios.
riskless rate of return A theoretical interest rate that would be returned on an investment which was... riskless transaction A transaction that guarantees a profit to whoever initiates it (i.e. riskless arbitrage).
 See also: Expected return, Market portfolio, Expense, Funding, Banks
  
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