Printer Friendly
Dictionary, Encyclopedia and Thesaurus - The Free Dictionary
3,898,544,596 visitors served.
forum Join the Word of the Day Mailing List For webmasters
?
Dictionary/
thesaurus
Medical
dictionary
Legal
dictionary
Financial
dictionary
Acronyms
 
Idioms
Encyclopedia
Wikipedia
encyclopedia
?

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



Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content.
?Page tools
Printer friendly
Cite / link
Feedback
Add definition
Mentioned in?  References in periodicals archive?   Financial browser?   Full browser?
 
In Section III, we develop a model that defines the excess Eurocurrency market risk premium as comprised of both sovereign and credit risk components.
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.
26 billion dirhams, reflecting market-wide devaluation of equity and fixed income markets and increased market risk premiums, the bank said.
 
 
 
Financial Dictionary
?

Terms of Use | Privacy policy | Feedback | Advertise with Us | Copyright © 2012 Farlex, Inc.
Disclaimer
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.