What is another word for risk premium?

Pronunciation: [ɹˈɪsk pɹˈiːmi͡əm] (IPA)

The term risk premium refers to the additional return or compensation that investors require for holding riskier investments. There are several similar terms used in finance to denote the same concept. One of the most commonly used synonyms is risk-adjusted return, which represents a measure of the return on an investment that considers the level of risk it carries. Another related term is market premium, which refers to the return that investors expect to earn above the risk-free rate of return. The term equity risk premium is also used to describe the additional return required by investors over and above the risk-free rate for investing in equity securities. Other synonyms for risk premium include excess returns, risk compensation, and risk spread.

What are the hypernyms for Risk premium?

A hypernym is a word with a broad meaning that encompasses more specific words called hyponyms.

Related words: risk premium definition, risk premium example, risk premium formula, risk premium wiki, risk premium stock

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