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Risk premium |
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Risk premium1. The higher expected return (in the sense of mathematical expected value) that an uncertain asset must pay in order for risk averse investors to be willing to hold it. 2. The difference between the interest rate on a risky asset and that on a safe one. 3. In exchange markets the difference between the forward rate and the expected future spot rate.Risk premiumThe reward for holding the risky equity market portfolio rather than the risk-free asset. The spread between Treasury and non-Treasury bonds of comparable maturity.Risk premium Similar MatchesWaiver of premiumWaiver of premiumA provision in an insurance policy that allows payment of insurance premiums to be permanently or temporarily stopped in the event the policyholder becomes incapacitated. Single premium life insuranceSingle premium life insuranceA single payment for an insurance policy rather than regular premiums. Risk premium approachRisk premium approachA common approach for tactical asset allocation to determine the relative valuation of asset classes based on expected returns. Single premium life insuranceSingle premium life insuranceA whole life insurance policy requiring one premium payment, which accrues cash value much more quickly than a policy paid in installments. PremiumPremiumIn the context of insurance, a premium is the regular sum you pay to keep your cover in force. Further Suggestionswaiver of premiuminsurance premium tax High premium convertible debenture insurance premium Fixed premium Premium income equity risk premium premium Tender offer premium Default premium warrant premium Forward premium Conversion premium Bond premium Insurance premium Single Premium Deferred Annuity (SPDA) Unamortized premiums on investments Call premium Premium bond Option premium Forward premium Percentage premium Term premiums life assurance premium relief premium bonds |
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