The "risk-free rate" is the return on an investment with no risk of financial loss. It is often represented by the yield on government bonds, such as those issued by the U.S. Treasury, which are considered safe because they are backed by the government. This rate serves as a benchmark for evaluating other investments. Investors use the risk-free rate to assess the potential return of riskier assets, such as stocks or corporate bonds. By comparing the expected returns of these investments to the risk-free rate, they can make informed decisions about where to allocate their money based on their risk tolerance.