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• A risk-free investment refers to investment in an asset in which the return exists but there is no possibility of any kind of loss or risk. • No risk exists in the risk-free asset, the return is generally equal to the current market rate of interest. • In the case of the US treasury or any debt which is issued by the government bodies, the amount of risk is very small, therefore they are considered a risk-free asset. What is the risk-free rate? A risk-free rate is the rate of interest that is expected by an investor while making an investment in a zero-risk financial asset. What is reinvestment risk? A risk-free rate is the rate of interest that is expected by an investor while making an investment in a zero-risk financial asset. #whatisriskfreeinvestment #investmentrisk #zeroriskfinancialasset #kalkinemedia To get more updates about Australia, NZ, UK, Canada and US stock market news, investors education & insights, subscribe our channel at https://bit.ly/3cHKioy Check out our media Website 👉 https://kalkinemedia.com/au Follow us and stay updated on the Go with the Market Charter 👇👇 Facebook - / kalkineau Twitter - / kalkineau LinkedIn - / 4829818