country risk premium (CRP)


The factor applied to investments with foreign-based companies to determine the increased amount of risk assumed compared with an investment in a domestic company. Investments with foreign companies or markets with a high CRP command a higher rate of return for the increased amount of risk due to political or economic instability that might exist.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
country risk country selection