RisikofreiRisikofaktor
RisikofreiRisikofaktor is a term used in risk management and financial modeling to denote a hypothetical input that carries no risk. The term combines the German words risiko (risk), frei (free), and faktor (factor). It is typically employed as a baseline or reference component in factor-based models to separate risk-related variations from deterministic elements.
In practice, the concept is closely related to the idea of a risk-free rate, which represents the
Limitations and considerations: no asset is truly risk-free, and modeling the existence of a risk-free factor
Applications: the concept is used in scenario analysis, stress testing, portfolio optimization, and the calibration of
See also: risk factor, risk-free rate, CAPM, factor model, Fama-French.