Business / Taxes / Risk-Free Return: When you buy a US Treasury bill that matures in 13 weeks, you're making a risk-free investment in the sense that there's virtually no chance of losing your principal (since the bill is backed by the US government) and no threat from inflation (since the term is so short). Your yield, or the amount you earn on that investment, is described as risk-free return. By subtracting the risk-free return from the return on an investment that has the potential to lose value, you can figure out the risk premium, which is one measure of the risk of choosing an investment other than the 13-week bill.
Return Noun Synonyms: replace, put back, restore, give back, bring or carry back
Return Adjective Synonyms: exchange, bring back or carry back
Return Verb Synonyms: come or go back, revert, turn back
Business / Taxes / Return On Equity: Return on equity (ROE) measures how much a company earns within a specific period in relation to the amount that's invested in its common stock. It is calculated by dividing the company's net income b MORE
Business / Finance / Return On Equity (ROE): Net income divided by equity. This ratio is often used as a measure of the return on funds invested in a business. MORE