The return that an individual stock or overall equity market offers in excess...
The difference between the expected rate of return of the stock market and the risk free rate of return; the amount of extra return investors demand for taking the extra risk of equity investment.... more on: Equity risk premium
The difference between the return on common stocks and the return on assets that have no risk (Treasury Bills). It is the additional compensation, over and above the riskless rate of return, for assuming the risk of common stocks.
The extra return that must be provided to compensate for market risk.
The additional return that the stock market has to provide over the risk free rate to compensate for the market risk.
The extra return that the overall stock market or a particular stock must provide over the rate on Treasury Bills to compensate for market risk. see also risk premium, risk-free return, risk.
The difference between the rate of return available from risk-free assets (such as government bonds) and the return anticipated from taking on the risk inherent in more volatile investments, such as shares.
a rate of return in addition to a risk-free rate to compensate for investing in equity instruments because they have a higher degree of probable risk than risk-free instruments (a component of the cost of equity capital or equity discount rate.)
The additional return expected from an equity (usually compared to Government bonds) that compensates for the extra risk of holding more volatile assets.
The difference between the rate of return available from risk-free assets (such as government bonds) and that available from assuming the risk inherent in more volatile investment such as shares.
The equity risk premium is the average amount by which share returns are higher than gilt returns. In the UK this century, the premium has been about 5.6% per year, and this is effectively the bounty an investor gets paid for taking the risk of investing in shares.
a rate of return added to a risk-free rate to reflect the additional risk of equity instruments over risk free instruments (a component of the cost of equity capital or equity discount rate).
The rate of return differential between low risk assets such as government bonds, and higher risk assets such as shares.
The extra return expected from investing in equities rather than a risk less asset.