aPeople dig very big pools and let sea water in 人们开掘非常大水池并且进入海水 [translate] aNo compensation should be earned for holding unnecessary, diversifiable risk. 不应该为藏品多余, diversifiable风险赢得报偿。 [translate] aWhat is the market risk premium? 什么是市场风险优质? [translate] ...
What is the Market Risk Premium? The market risk premium is the additional return on the portfolio because of the additional risk involved in the portfolio; essentially, the market risk premium is the premium return an investor has to get to make sure they can invest in a stock or a bond...
The concept of market risk premium is closely related to the Capital Asset Pricing Model (CAPM), which provides a framework for determining the expected return of an investment based on its beta, a measure of systematic risk. According to CAPM, the expected return of an investment is equal to...
What does a security's risk premium depend on? What is the Market Risk Premium? What are the two components of portfolio risk? What is the relationship between risk (variability) and return? How is the risk premium determined? What is reputational risk? Explain in detail. ...
@nony - What do you think of the historical market risk premium? You often hear the caution, “past performance is no guarantee of future returns.” So why do people look at the historical return on the stock market? Everywhere I turn, I am told that the average expected rate of return...
aold file not found. however, a file of the same name was 没被发现的老文件。 然而,同一个名字的文件是[translate] aIf the risk-free rate is 6% and the market risk premium is also 6% What is the stock’s beta? 如果无风险的率是6%,并且市场风险保险费是否是也6%什么是股票的beta ?[transl...
If the risk-free rate is 2%, and the market risk premium is 6%, what is the required rate of return on a stock with a beta of 2? A) 4% B) 8% C) 12% D) 14% Required Rate Of Return: The required rate o...
Understanding the Market Risk Premium The market risk premium consists of three parts: The required risk premium, which is essentially thereturnover the risk-free rate that an investor must realize to justify the uncertainties ofequitiesinvestments. ...
The market risk premium is equal to the slope of thesecurity market line(SML), a graphical representation of thecapital asset pricing model(CAPM). CAPM measures the required rate of return on equity investments, and it is an important element ofmodern portfolio theory(MPT) anddiscounted cash fl...
Variance Risk PremiumPredictabilityLeverage EffectVolatility AsymmetryBollerslev, Tauchen and Zhou (2009) find that the variance risk premium (VRP) performs well in predicting short-term returns. This paper studies how this predicPyun, Sungjune