Risk Premium in Financial Formulas

Risk Premium is the additional return or compensation that investors demand for holding a risky asset compared to a risk-free investment. And is denoted by RP.

Financial formulas that make use of Risk Premium

fxMerger Arbitrage SpreadGo

FAQ

What is the Risk Premium?

Risk Premium is the additional return or compensation that investors demand for holding a risky asset compared to a risk-free investment.

Can the Risk Premium be negative?

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

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