The rate of return on an asset with no uncertainty regarding its return is known as the ___________. A typical example is the rate of return earned on a Treasury bill.
A) Risk premium.
B) Capital gains yield.
C) Risk-free rate.
D) Dividend yield.
E) Compound return.

Question

Quizplus · Accepted Answer

The term "risk-free rate" refers to the rate of return on an asset that has no uncertainty regarding its return, such as a Treasury bill. Therefore, choice C is the correct answer.

The Rate of Return on an Asset with No Uncertainty