Risk Premium in Financial Accounting Formulas

Risk Premium represents the additional return an investor requires for accepting higher levels of risk. And is denoted by R_p.

Financial Accounting formulas that make use of Risk Premium

fxCertainty Equivalent CashflowGo

What is the Risk Premium?

Risk Premium represents the additional return an investor requires for accepting higher levels of risk.

Can the Risk Premium be negative?

{YesorNo}, the Risk Premium, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

Let Others Know

✖

Copied!