# Risk-free rate of return

The risk-free rate of return is the theoretical rate of return of an investment with zero risk. The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time. The real risk-free rate can be calculated by subtracting the current inflation rate from the yield of the Treasury bond matching your investment duration—Read more at Investopedia. Chen, James. “Risk-Free Rate of Return.” 1 October 2019