Risk Premium

Business / Finance / Risk Premium: The reward for holding the risky equity market portfolio rather than the risk-free asset. The spread between Treasury and non-Treasury bonds of comparable maturity.

Other Words for Premium

Premium Noun Synonyms: bonus, extra, dividend, prize, award, reward, perquisite
Premium Verb Synonyms: incentive, inducement, stimulus, incitement, lure, bait, spur, goad, reward, come-on, freebie
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Other Words for Risk

Risk Noun Synonyms: danger, peril, jeopardy, hazard, chance, gamble
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Market Price Of Risk

Business / Finance / Market Price Of Risk: A measure of the extra return, or risk premium, that investors demand to bear risk. The reward-to-risk ratio of the market portfolio. MORE

Risk-Free Return

Business / Taxes / Risk-Free Return: When you buy a US Treasury bill that matures in 13 weeks, you're making a risk-free investment in the sense that there's virtually no chance of losing your principal (since the bill is backed by the U MORE

Risk-Adjusted Discount Rate

Business / Finance / Risk-Adjusted Discount Rate: The rate established by adding an expected risk premium to the risk-free rate in order to determine the present value of a risky investment. MORE

Risk Indexes

Business / Finance / Risk Indexes: Categories of risk used to calculate fundamental beta, including (1) market variability, (2) earnings variability, (3) low valuation, (4) immaturity and smallness, (5) growth orientation, and (6) fina MORE

Risk Lover

Business / Finance / Risk Lover: A person willing to accept lower expected returns on prospects with higher amounts of risk. MORE

Risk Management

Business / Accounting / Risk Management: Procedures to minimize the adverse effect of a possible financial loss by: 1) identifying potential sources of loss: 2) measuring the financial consequences of a loss occurring: and 3) using controls MORE

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