Risk free rate
The risk free rate of return is the amount of interest an investor would receive from an investment without taking on any risk. Many analysts use short-dated Government bonds as the risk free rate.
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When it comes to investing, there's no such thing as a risk-free investment. Everything in life has some level of risk attached to it - even breathing. Nevertheless, returns on Government bonds (regarded as pretty darn safe) are often referred to as risk free. .
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