risk premium en · NOUN
Meanings
-
(qualifier:investing) The return on investment in excess of the (theoretical) risk-free rate of return that an investment is expected to yield: the extra benefit that an investor either gets or hopes to get in exchange for taking a risk. (Often measured by proxy measures such as aggregate corporate earnings compared with interest rates on certain benchmark bonds that stand in for risk-free securities.)
The risk premium of equities can turn negative according to proxy measures, as has often occurred over the decades.
-
(qualifier:investing) The return on investment in excess of the (theoretical) risk-free rate of return that an investment is expected to yield: the extra benefit that an investor either gets or hopes to get in exchange for taking a risk. (Often measured by proxy measures such as aggregate corporate earnings compared with interest rates on certain benchmark bonds that stand in for risk-free securities.) ▸ An increase in the interest rate of a bond or loan according to the financial risk.
The loan shark added another 10% as the risk premium for an especially dubious borrower.
Forms
| Spelling | Features | Labels | Source |
|---|---|---|---|
| risk premiums | Number=Plur | lexicographic |
Translations (12)
ca prima de risc (Translations) · sv riskpremie (Translations) · fr prime de risque (Translations) · el επασφάλιστρο κινδύνου (Translations) · pt prêmio de risco (Translations) · gl prima de risco (Translations) · de Risikoabschlag (Translations) · de Risikoaufschlag (Translations) · it premio per il rischio (Translations) · de Risikozuschlag (Translations) · de Risikoprämie (Translations) · es prima de riesgo (Translations)