Risk-Free Asset

In that case, one of the two dominant portfolios has to be a portfolio consisting of nothing but the risk-free asset.

To supply the world's risk-free asset, the country at the heart of the international monetary system has to run a current account deficit.

Yet that is not a particularly helpful formulation for investors given that it is still possible to pay too much for a risk free asset.

The presence of a risk-free asset can hardly be overstated in a modern financial system.

In doing so, it becomes more indebted to foreigners until the risk-free asset ceases to be risk-free.

"The violation of a risk-free asset class will have long-term consequences. "

History offers few clues on the consequences of a downgrade to the world's dominant risk-free asset.

Dollars are the world's primary reserve currency, and Treasuries are the world's preferred "risk-free" asset.

The price of US Treasuries, the classic "risk-free" asset of financial theory, also rose on Tuesday.

The eurozone needs a risk-free asset class, and this means something boring and simple.

Next, assume that there is a risk-free asset.

Today, for the first time in generations, it is time to contemplate a world without a risk-free asset.

Many use Treasury bonds as the risk-free asset for capital purposes. As Capital Economics points out

They have constructed their portfolios on the assumption that Treasuries are the risk-free asset;

The Efficient Boundary of Portfolio Allowing Risk-free Asset Investment

B. Capital allocation between the Risky Asset and the Risk-Free Asset

Utility Maximizing of the Portfolio Include a Risk-Free Asset

Provide small saver with risk-free asset at reasonable cost

Risk free asset: proxy; T-bills