Define: Market Risk Premium

UK Accounting Glossary

Definition: Market Risk Premium



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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.


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Market Risk Premium. PayrollHeaven.com. Retrieved April 04, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/market-risk-premium/

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.