Risk-Free Asset
An asset which has a certain future return. Treasuries (especially T-bills) are considered to be risk-free because they are backed by the U.S. government.

Investopedia Says:
Because they are so safe, the return on risk-free assets is very close to the current interest rate.
Many academics say that there is no such thing as a risk-free asset because all financial assets carry some degree of risk. Technically, this may be correct. However, the level of risk is so small that, for the average investor, it is OK to consider U.S. Treasuries or Treasuries from stable Western governments to be risk-free.

Related Terms:
Government Security
Risk-Free Rate Of Return
Risk-Return Tradeoff
Treasury Bill - T-Bill

• Trailing
• Trailing EPS
• Trailing Price-To-Earnings (Trailing P/E)
• Trailing Stop
• Trailing Twelve Months (TTM)
• Trailing Twelve Months (TTM)
• Tranches
• Transaction
• Transaction Costs
• Transaction Exposure
• Transaction Risk
• Transfer
• Transfer Agent
• Transfer Of Risk
• Transfer On Death (TOD)
• Transfer On Death (TOD)
• Transfer Payment
• Transfer Price
• Transfer Procedures
• Translation Exposure
• Translation Risk
• Transparency
• Transportation Expenses
• Transportation Sector
• Traunch