Risk Premium: Difference between revisions
From Open Risk Manual
Wiki admin (talk | contribs) No edit summary |
(No difference)
|
Latest revision as of 00:44, 28 January 2020
Definition
Risk Premium denotes a difference in monetary value associated with an asset that is attributed entirely to its risk characteristics versus another asset that is considered free of the said risk.
Risk premia can be due to credit, liquidity and a variety of other risk factors