In the Capital Asset Pricing Model, the market risk premium (kM - kRF) is the additional return expected from a diversified market portfolio over the risk-free rate.

Authors

• Person: Not available Organization: Pressbooks
  Chapter 8 – Risk and Return – Fundamentals of Finance

Sources

• Chapter 8 – Risk and Return – Fundamentals of Finance pressbooks.pub Pressbooks via serper

Referenced by nodes (1)

• risk-free rate concept