English Explanatory Dictionary

risk premium

English dictionary entry

Meanings

noun
  1. 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.)
  2. An increase in the interest rate of a bond or loan according to the financial risk.

Word forms

risk premium risk premiums

Translations

Catalan: prima de risc French: prime de risque Galician: prima de risco German: Risikoprämie German: Risikoabschlag German: Risikozuschlag German: Risikoaufschlag Italian: premio per il rischio Portuguese: prêmio de risco Spanish: prima de riesgo Swedish: riskpremie
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