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Market Risk Premium

   Also found in: Wikipedia 0.01 sec.
Risk Premium
The return over and above the risk free rate of return that an investor expects in exchange for each additional unit of risk. According to Markowitz portfolio theory, rational investors only accept additional risk if they expect a greater return. One refers to this greater return as the risk premium. See also: Risk capital, Eat well, Sleep well.
Market Risk Premium

What Does Market Risk Premium Mean?

The difference between the expected return on an investment and the risk-free rate of return.

Investopedia explains Market Risk Premium

It is equal to the slope of the security market line (SML).

Related Terms:
• Beta
• Relative Strength Index
• Risk
• Systematic Risk
• Unsystematic Risk



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In Section III, we develop a model that defines the excess Eurocurrency market risk premium as comprised of both sovereign and credit risk components.
Eurocurrency risk premia by Galpin, Wendy; Resnick, Bruce G.; Shoesmith, Gary L. / International Journal of Business
The time-series averages of the monthly slopes and intercepts and their standard errors are used to test whether the average market risk premium is positive and the average intercept is equal to the risk-free rate.
The conditional beta and the cross-section of expected returns by Bali, Turan G.; Cakici, Nusret; Tang, Yi / Financial Management
26 billion dirhams, reflecting market-wide devaluation of equity and fixed income markets and increased market risk premiums, the bank said.
News in brief by Daily News Egypt (Egypt)
 
 
 
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