Knowledge Tree
risk premium
Also known as: risk premiums
Facts (2)
Sources
The Relationship Between Risk and Return in Different Asset Classes bi-sam.com Mar 18, 2025 1 fact
claimHigher market volatility is typically associated with greater risk premiums but also higher uncertainty regarding asset performance.
Chapter 8 – Risk and Return – Fundamentals of Finance pressbooks.pub 1 fact
claimThe Capital Asset Pricing Model (CAPM) posits that investors should be compensated for two main components: the time value of money, represented by the risk-free rate, and the risk premium, based on market risk and the investment’s beta.