risk premium
Definition 1
Acquisitions: Estimated portion of the purchase price of an asset or firm assumed as the market (systemic) risk inherent in the purchase.
Definition 2
Investing: (1) Difference between a risk-free return (such as from government bonds) and the total return from a risky investment (such as equity stock). (2) Additional return or rate of interest (above the market interest rate) an investor requires for investing in a proposition or venture. Also called price of risk. See also price of time.
Mentioned in these definitions
Mentioned in these terms
Popular 'Investing' Terms
risk premium in the news
Loading...
This content can be found on the following page:
http://www.businessdictionary.com/definition/risk-premium.html
