Translation and analysis of words by ChatGPT artificial intelligence
On this page you can get a detailed analysis of a word or phrase, produced by the best artificial intelligence technology to date:
- how the word is used
- frequency of use
- it is used more often in oral or written speech
- word translation options
- usage examples (several phrases with translation)
- etymology
risk free rate - translation to german
![[[EURIBOR]] is used as a proxy for the risk-free rate in European contexts. Euribor-12m (red), 3m (blue), 1w (green) value](https://commons.wikimedia.org/wiki/Special:FilePath/EuriborChart12m3m1w.svg?width=200 "[[EURIBOR]] is used as a proxy for the risk-free rate in European contexts. Euribor-12m (red), 3m (blue), 1w (green) value")
Definition
Wikipedia
The risk-free rate of return, usually shortened to the risk-free rate, is the rate of return of a hypothetical investment with scheduled payments over a fixed period of time that is assumed to meet all payment obligations.
Since the risk-free rate can be obtained with no risk, any other investment having some risk will have to have a higher rate of return in order to induce any investors to hold it.
In practice, to infer the risk-free interest rate in a particular currency, market participants often choose the yield to maturity on a risk-free bond issued by a government of the same currency whose risks of default are so low as to be negligible. For example, the rate of return on zero-coupon Treasury bonds (T-bills) is sometimes seen as the risk-free rate of return in US dollars.
