Risk premium for Stock i
Risk premium for Stock i, RPi, is the extra return that an investor requires to hold risky Stock i instead of a risk-free asset.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Risk premium for Stock i, RPi. The extra return that an investor requires to hold risky Stock i instead of a risk-free asset.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
