Market Risk Premium

What Does Market Risk Premium Mean?
The difference between the expected return on a market portfolio and the risk-free rate.

Investopedia explains Market Risk Premium
It is equal to the slope of the security market line (SML).

Filed Under: Active Trading, Technical Analysis

Related Terms

Beta
Coskewness
Market Risk
Risk
Systematic Risk
Unsystematic Risk
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Related Links

S&P Composite Price Index and its Risk Premium - An excellent article by Ruben Cohen on risk premium in a world that is not yet perfect, but is approaching it.
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