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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. Equity premium puzzle - Wikipedia

    en.wikipedia.org/wiki/Equity_premium_puzzle

    The equity premium puzzle addresses the difficulty in understanding and explaining this disparity. [1] This disparity is calculated using the equity risk premium: The equity risk premium is equal to the difference between equity returns and returns from government bonds. It is equal to around 5% to 8% in the United States. [2]

  4. Equity risk - Wikipedia

    en.wikipedia.org/wiki/Equity_risk

    Equity risk is "the financial risk involved in holding equity in a particular investment." [1] Equity risk is a type of market risk that applies to investing in shares. [2] The market price of stocks fluctuates all the time, depending on supply and demand. The risk of losing money due to a reduction in the market price of shares is known as ...

  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. Equity Risk Premium and Buying the Correction - AOL

    www.aol.com/news/equity-risk-premium-buying...

    The stock market elevator just stopped on a floor of fundamental value for pro investors. ... For premium support please call: 800-290-4726 more ways to reach us. Sign in. Mail. 24/7 Help.

  7. Capital asset pricing model - Wikipedia

    en.wikipedia.org/wiki/Capital_asset_pricing_model

    The market risk premium is determined from the slope of the SML. The relationship between β and required return is plotted on the security market line (SML), which shows expected return as a function of β. The intercept is the nominal risk-free rate available for the market, while the slope is the market premium, E(R m)− R f. The security ...

  8. Market risk - Wikipedia

    en.wikipedia.org/wiki/Market_risk

    Market risk is the risk of losses in positions arising from movements in market variables like prices and volatility. [1] There is no unique classification as each classification may refer to different aspects of market risk. Nevertheless, the most commonly used types of market risk are:

  9. Money market accounts vs. money market funds: How these two ...

    www.aol.com/finance/money-market-account-vs...

    A money market fund (MMF) is a mutual fund that pools money from many investors to buy safe short-term investments like government bonds and high-quality corporate loans. Money market funds aim to ...