risk premium Definition

risk premium

Definition

The reward for holding a risky investment rather than a risk-free one.

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risk premium is ...
... part of the Strategies subject.

Related Terms

equity risk premium - More

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Capital Asset Pricing Model - More

expected return, hurdle rate, CAPM, required rate of return, fair game

risk premium appears in these other terms

market risk premium

risk premium appears in the definitions of these other terms on BusinessDictionary.com

risk diversification, price of risk, risk adjusted discount rate, technology valuation