Risk and return

In general terms, the riskier an investment, the higher return an investor should expect for taking on that risk.

An investment risk is the possibility that the security (stock or bond) will default or depreciate significantly in value. But in order to assess just what return is required to compensate you for taking a risk, you need to work from a benchmark rate. This rate is known as the risk-free rate.
Risk-free rate

The risk-free rate usually corresponds to the rate available on a risk-free investment. In most cases it corresponds to the rate paid on long-term government bonds, which are considered relatively risk-free.
Risk premiums

The risk premium is essentially the reward an investor expects for taking on risk. This premium depends on the amount a security can be expected to deviate from its purchase price.
Risk-adjusted return

Higher-risk investments (such as small-cap stocks) can be expected to be far more volatile than a government bond, so investors will expect a return - for example, 15% - greater than the risk-free rate.

If a government bond provides a return of 5%, then the risk-adjusted return for the higher-risk investment is 15% - 5% = 10%.

Risk-adjusted returns are not quoted anywhere because they are theoretical, but try to apply the concept when making investment decisions. Estimate the risk-adjusted return by comparing the investment return you are looking at with a risk-free return. Then you need to decide if that return is adequate compensation for taking on the risk.