Difference between revisions of "Market risk premium"
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==Definitions== | ==Definitions== | ||
According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | According to [[Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition)]], | ||
| − | :[[Market risk premium]], '' | + | :[[Market risk premium]], ''RP<small>M</small>''. The difference between the expected return on the market and the risk-free rate. |
==Related concepts== | ==Related concepts== | ||
Revision as of 23:15, 28 October 2019
Market risk premium, RPM, is the difference between the expected return on the market and the risk-free rate.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Market risk premium, RPM. The difference between the expected return on the market and the risk-free rate.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
