Market Risk Premium

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Definition: Market Risk Premium

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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https://payrollheaven.com/define/market-risk-premium/
Modern Language Association (MLA):
Market Risk Premium. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
May 18, 2024 https://payrollheaven.com/define/market-risk-premium/.
Chicago Manual of Style (CMS):
Market Risk Premium. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/market-risk-premium/ (accessed: May 18, 2024).
American Psychological Association (APA):
Market Risk Premium. PayrollHeaven.com. Retrieved May 18, 2024
, 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 | 0 Views.