Risk premium approach(redirected from Risk Premium Approaches)
Risk premium approach
A common approach for tactical asset allocation to determine the relative valuation of asset classes based on expected returns.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Risk Premium Approach
In active portfolio management, a way to classify different assets according to their risk. In a risk premium approach, one seeks to find investments with higher returns for higher risks. See also: Risk Premium.
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