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equity risk premium
(redirected from Equity premium puzzle)

   Also found in: Wikipedia 0.04 sec.
Equity Risk Premium
The extra return that the stock market provides over the risk free rate to compensate for market risk.

Notes:
A higher rate of return is required to entice investors into a riskier investment .


equity risk premium
The extra return expected from investments in common stocks compared to the return from U.S. Treasury securities.

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