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Riskless or risk free asset |
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Riskless or risk free assetAn asset whose future return is known today with certainty. The risk-free asset is commonly defined as short-term obligations of the US government.Riskless or risk free asset Similar MatchesRiskless rate of returnRiskless rate of returnThe rate earned on a riskless asset. Riskless transactionRiskless transactionA transaction that is guaranteed a profit, such as the arbitrage of a temporary differential between commodity prices in two different markets. The evaluation of whether dealer markups and markdowns in OTC transactions are reasonable. According to NASD, markups or markdowns should not exceed 5%. Riskless arbitrageRiskless arbitrageThe simultaneous purchase and sale of the same asset to yield a profit. Riskless principleRiskless principleA term used by the London Stock Exchange to denote either: that a trade was reported as a riskless principle transaction between two non-members, where the two transactions are executed at different prices or on different terms (requiring two separate trade reports)orthat a market maker is reporting a riskless principle transaction where the two transactions are executed at different prices. Riskless rateRiskless rateThe rate earned on a riskless investment, typically the rate earned on the 90-day US Treasury Bill. |
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