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  2. Risk premium - Wikipedia

    en.wikipedia.org/wiki/Risk_premium

    The risk premium is used extensively in finance in areas such as asset pricing, portfolio allocation and risk management. [2] Two fundamental aspects of finance, being equity and debt instruments, require the use and interpretation of associated risk premiums with the inputs for each explained below:

  3. Minimum acceptable rate of return - Wikipedia

    en.wikipedia.org/wiki/Minimum_acceptable_rate_of...

    A risk premium can also be attached to the hurdle rate if management feels that specific opportunities inherently contain more risk than others that could be pursued with the same resources. A common method for evaluating a hurdle rate is to apply the discounted cash flow method to the project, which is used in net present value models.

  4. Rate making - Wikipedia

    en.wikipedia.org/wiki/Rate_making

    The loading "refers to the amount of the premium necessary to cover other expenses, particularly sales expenses, and to allow for a profit". The gross rate "is the pure premium and the loading per exposure unit". Finally, the gross premium is the premium paid by the insured consisting of the gross rate multiplied by the number of exposure units ...

  5. Why Risk Premium Matters - AOL

    www.aol.com/news/why-risk-premium-matters...

    Risk premium is the added return that investors expect to earn from an asset such as a share of stock that carries more risk than another asset such as a high-grade corporate bond. The risk ...

  6. Credibility theory - Wikipedia

    en.wikipedia.org/wiki/Credibility_theory

    The problem is then to devise a way of combining the experience of the group with the experience of the individual risk to calculate the premium better. Credibility theory provides a solution to this problem. For actuaries, it is important to know credibility theory in order to calculate a premium for a group of insurance contracts. The goal is ...

  7. Security market line - Wikipedia

    en.wikipedia.org/wiki/Security_market_line

    β is a nondiversifiable or systematic risk R M is a market rate of return R f is a risk-free rate. When used in portfolio management, the SML represents the investment's opportunity cost (investing in a combination of the market portfolio and the risk-free asset). All the correctly priced securities are plotted on the SML.

  8. Do you need a financial advisor as a small business owner? - AOL

    www.aol.com/finance/financial-advisor-small...

    Lack of risk management Running a business is risky enough, but there are some easily avoidable blind spots a small business financial planner can help you avoid, such as not carrying enough ...

  9. From frozen waffles to onions: How recent recalls highlight ...

    www.aol.com/frozen-waffles-onions-recent-recalls...

    Processing fresh fruit and produce into ready-to-eat products increases the risk of contamination because it breaks the natural exterior barrier of the produce, say a cantaloupe's rind or an apple ...