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In finance, the risk premium can be the expected rate of return above the risk-free interest rate. When measuring risk, a common sense approach is to compare the virtually risk-free return on T-bills and the very risky return on other investments. The difference between these two returns can be interpreted as a measure of the excess return on the average risky asset. This excess return is known as the risk premium.
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12 mins confidence: peer agreement (net): +3
Explanation: acesta este termenul general care mi-a sarit in minte imediat
Vandor Local time: 20:20 Specializes in field Native speaker of: Hungarian, Romanian PRO pts in category: 19