risk premium
The return on investment in excess of the risk-free rate of return that an investment…The return on investment in excess of the (theoretical) risk-free rate of return that an investment is expected to yield: the extra benefit that an investor either gets or hopes to get in exchange for taking a risk. (Often measured by proxy measures such as aggregate corporate earnings compared with interest rates on certain benchmark bonds that stand in for risk-free securities.)
Meaning
2 sensesThe return on investment in excess of the (theoretical) risk-free rate of return that an investment is expected to yield: the extra benefit that an investor either gets or hopes to get in exchange for taking a risk. (Often measured by proxy measures such as aggregate corporate earnings compared with interest rates on certain benchmark bonds that stand in for risk-free securities.)
The risk premium of equities can turn negative according to proxy measures, as has often occurred over the decades.
Risikoprämie, Risikoabschlag, Risikozuschlag
The return on investment in excess of the (theoretical) risk-free rate of return that an investment is expected to yield: the extra benefit that an investor either gets or hopes to get in exchange for taking a risk. (Often measured by proxy measures such as aggregate corporate earnings compared with interest rates on certain benchmark bonds that stand in for risk-free securities.)
An increase in the interest rate of a bond or loan according to the financial risk.
The loan shark added another 10% as the risk premium for an especially dubious borrower.
Translations
5 languagesBy meaning 1
Forms
plural: risk premiums| Singular | risk premium |
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| Plural | risk premiums |
regular