real risk-free rate of return

real risk-free rate of return definition - finance
An interest rate that assumes no inflation and no uncertainty about future cash flows or repayments. Treasury bills are one example of an investment with a risk-free rate of return, because the U.S. government is perceived to be stable and guarantees payment. This also can be called the pure time value of money.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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