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  2. Share Prices
  3. Finance Glossary
  4. Terms Beginning With R
  5. Risk Premium

Risk Premium

Definition of 'Risk Premium'

The additional return demanded by investors above the risk-free rate to compensate for exposure to systematic risk.

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Related Terms

Factor Risk / Non-Factor RiskPremiumRelevant RiskSecurity Market LineAccrued Rights Premium (ARP)PremiumsZero Cost OptionActuaryFundamental BetaInternal Rate of ReturnDiversifiable RiskEmerging MarketsMarket RiskPrice RiskRisk LoverRisk TransformationBid PremiumBondClaw BackConversion Premium

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