Market Risk Premium

Business, Legal & Accounting Glossary

Definition: Market Risk Premium

Full Definition of Market Risk Premium

Market Risk Premium is the difference between the expected return on a market portfolio and the risk-free rate. Market Risk Premium is also called equity premium, market premium and risk premium.

The Market Risk Premium can be the historical differential return of the market over treasury bonds; the expected market risk premium (expected differential return) of the market over treasury bonds; or the required market risk premium of a portfolio over the risk-free rate required by an investor.

Cite Term

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Page URL
Modern Language Association (MLA):
Market Risk Premium. Payroll & Accounting Heaven Ltd. July 12, 2020
Chicago Manual of Style (CMS):
Market Risk Premium. Payroll & Accounting Heaven Ltd. (accessed: July 12, 2020).
American Psychological Association (APA):
Market Risk Premium. Retrieved July 12, 2020, from website:

Definition Sources

Definitions for Market Risk Premium are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 22nd March, 2020 | 0 Views.