risk premium

risk premium
An additional *return on a high-*risk investment required to *reward investors for assuming a high level of risk.

Auditor's dictionary. 2014.

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Look at other dictionaries:

  • Risk premium — A risk premium is the minimum amount of money by which the expected return on a risky asset must exceed the known return on a risk free asset, in order to induce an individual to hold the risky asset rather than the risk free asset. Thus it is… …   Wikipedia

  • Risk Premium — The return in excess of the risk free rate of return that an investment is expected to yield. An asset s risk premium is a form of compensation for investors who tolerate the extra risk compared to that of a risk free asset in a given investment …   Investment dictionary

  • risk premium — market risk premium 1) The difference between the expected rate of return on an investment and the risk free rate of return over the same period. If there is any risk element at all, the rate of return should be higher than if no risk were… …   Big dictionary of business and management

  • risk premium — market risk premium The difference between the expected rate of return on an investment and the risk free rate of return (e.g. on a government stock) over the same period. If there is any risk element at all, the rate of return should be higher… …   Accounting dictionary

  • Risk premium — The reward for holding the risky market portfolio rather than the risk free asset. The spread between Treasury and non Treasury bonds of comparable maturity. The New York Times Financial Glossary * * *    The extra reward required from an… …   Financial and business terms

  • risk premium — The reward for holding the risky market portfolio rather than the risk free asset. The spread between Treasury and non Treasury bonds of comparable maturity. Bloomberg Financial Dictionary The expected additional return for making a risky… …   Financial and business terms

  • risk premium — rizikos priedas statusas T sritis turto vertinimas apibrėžtis Prie nerizikingos palūkanų normos pridedama grąžos norma, rodanti investicijos ir su ja susijusią riziką. atitikmenys: angl. risk premium ryšiai: susijęs terminas – grąžos norma… …   Lithuanian dictionary (lietuvių žodynas)

  • risk premium — noun : net premium …   Useful english dictionary

  • risk premium — payment for willingness to make a loan or for taking a financial risk when there is fear that a loan will not be repaid or that the danger will be realized …   English contemporary dictionary

  • risk premium — / rɪsk ˌpri:miəm/ noun an extra payment (increased dividend or higher than usual profits) for taking risks …   Dictionary of banking and finance

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