A risk-free asset is defined as one whose cash flows are not certain across all possible states of the world.

Name: A risk-free asset is defined as one whose cash flows are not certain across all possible states of the world.
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A risky asset is defined as one whose cash flows are not certain across all possible states of the world,compared with a risk-free asset,which is an asset that returns a certain pay-off no matter what occurs in the future.

A Risk-Free Asset Is Defined as One Whose Cash Flows