risikofrei

Risikofrei is a German term used to denote something that is free from risk. In economics and finance, the concept describes an asset, investment, or benchmark that is assumed to carry no risk of financial loss over a given period. In practice, the risk-free rate is not a single guaranteed return but a theoretical reference point used in models and calculations. The most common proxies for a risk-free asset are highly liquid government securities with very low default risk, such as short- to medium-term government bonds of creditworthy countries. In international finance and macroeconomics, the risk-free rate underpins models for asset pricing and valuation, including CAPM, the Black-Scholes framework, and the discounting of cash flows.

In applying the concept, the risk-free rate serves as the baseline return against which risk premiums are measured. But real-world imperfections mean no asset is truly risk-free. Inflation, currency movements, liquidity constraints, and political or financial shocks can affect the perceived safety of even government-issued securities. Additionally, the choice of currency and time horizon influences what is considered risk-free.

Because risk-free is a theoretical construct, practitioners differentiate between nominal and real risk-free rates (adjusted for inflation) and between instantaneous and discrete compounding. The term is widely used in German-language economics, finance textbooks, and professional discourse.

See also: risk-free rate, government bond, CAPM, risk premium, safe asset.