Equity risk premium
Equity risk premium, RPM, is expected market return minus the risk-free rate; also called market risk premium or equity premium.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Equity risk premium, RPM. Expected market return minus the risk-free rate; also called market risk premium or equity premium.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
