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What does it mean when one has market risk premium?
When one has market risk premium he/she is willing to take an financial risk. The risk premium is how much value stocks should return over a risk-free investment. Stocks are considered a higher financial risk (and possible a faster gain) opposed to, for instance, bonds.
What Is an expression of possible loss adverse outcome or negative consequence in terms of probability and severity?
Risk
The market risk premium is measured by?
The market risk premium is measured by the market return less risk-free rate. You can calculate the market risk premium as market risk premium is equal to the expected return of the market minus the risk-free rate.
What is the premium added as a compensation for the risk that an investor will not get paid in full?
maturity risk premium
What is risk premium?
Risk premium is the compensation investors expect to earn in return for taking risks.
What is the current market risk premium?
Banks are currently using 8% market risk premium. Data as of Feb, 2013.
What is a negative risk?
A negative risk is something that is a bad or dangerous risk to take.
What is an expression of possible loss adverse outcome or negative consequence in terms of probability and severity.?
Risk
What is the premium that reflects the risk associated with changes in interest rates for l long-term security?
Maturity Risk Premium (MPR)
If the required rate of return is 11 the risk free rate is 7 and the market risk premium is 4 If the market risk premium increased to 6 percent what would happen to the stocks required rate of return?
If the required rate of return is 11 the risk free rate is 7 and the market risk premium is 4 If the market risk premium increased to 6 percent what would happen to the stocks required rate of return?
What is risk situation?
Risk situation:Risk:Risk is the measure of the effect of an event, such as that of an effect taking place at a given level of exposure.Although the term "risk" is generally associated with negative outcomes, that is not always the case.An example of a risk with a possible positive or negative outcome is the risk you take when buying a lottery ticket.A risk situation basically includes two components:exposure processes - how exposure occurs and to what degreeeffects processes - possible changes and how they may occur as a result of that exposure
What is the definition of a passive risk?
Risk is a situation which involves possible exposure to danger, injury, loss, or any other negative occurrence. Passive risk requires no action beyond documenting a decision.
