Secvolt
New Member
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Joined: 30 Dec 2022
Location: United state
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| Risk premium and market risk premium |
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The rate at which shares & stocks accrue a return is called the equity risk premium.
Also called the expected rate of return, it is generally higher than the risk-free rate.
The difference is the “additional” that comes with the Market Risk Premium (market risk premium).
Risk premium refers to the extra returns made on risky investments, not the risky ones.
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