GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW) | ||||||
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09:57 May 26, 2005 |
Dutch to English translations [PRO] Bus/Financial - Finance (general) | |||||||
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| Selected response from: Kate Hudson (X) Netherlands Local time: 01:13 | ||||||
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Summary of answers provided | ||||
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4 +5 | equity risk premium |
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equity risk premium Explanation: This seems to be a pretty general term used in the financial world Equity Risk Premium The difference between the rate of return available from risk-free assets (such as Government bonds) and that available from assuming the risk inherent in more volatile investment such as shares. Over the very long term in Australia, the equity risk premium is around 8% over cash. Shorter term it is of the order of 3% over long bonds, which are themselves some 2% over cash. Reference: http://www.investopedia.com/articles/04/012104.asp Reference: http://moneymanager.smh.com.au/tools/glossary/dict_e.html |
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