# Risk-adjusted discount rate

Also found in: Acronyms.

## Risk-adjusted discount rate

The rate established by adding a expected risk premium to the risk-free rate in order to determine the present value of a risky investment.

## Risk-Adjusted Discount Rate

The discount rate calculated by adding a risk premium to the risk-free rate of return. This is used to calculate the rate of return on a risky investment.

Want to thank TFD for its existence? Tell a friend about us, add a link to this page, or visit the webmaster's page for free fun content.

Link to this page: