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The market risk premium (MRP) is the difference between the expected return on a market portfolio and the risk-free rate. The market risk premium is equal to the slope...
What is the Market Risk Premium? The market risk premium is the additional return an investor will receive (or expects to receive) from holding a risky market portfolio instead of risk-free assets.
A risk premium is the higher rate of return you can expect to earn from riskier assets like stocks, instead of investing in a risk-free assets like government bonds. When you invest, there’s...
The market risk premium is the premium return an investor must obtain to ensure they may invest in a stock, bond, or portfolio instead of risk-free assets. It is computed by subtracting the expected return of the market and the risk-free rate.
The term “market risk premium” refers to the extra return that an investor expects for holding a risky market portfolio instead of risk-free assets. In the capital asset pricing model (CAPM), the market risk premium represents the slope of the security market line (SML).
The market risk premium represents the percentage of total returns attributable to the volatility of the stock market. To calculate the market risk premium, you'll need to...
The market risk premium is the additional return that's expected on an index or portfolio of investments above the given risk-free rate. The equity risk...