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risk premium

What Is The Risk Free Return?

January 24, 2024 by Ahmed Ali

What Is The Risk Free Return? Risk-free return is the theoretical return attributed to an investment that provides a guaranteed return with zero risks. The risk-free rate of return represents the interest on an investor’s money that would be expected from an absolutely risk-free investment over a specified period of time. What is risk-free of

Categories Finance and Business Tags default risk, risk, risk premium, zero risk, zero risks

What Is Interest Risk Premium?

January 24, 2024 by Ahmed Ali

What Is Interest Risk Premium? A risk premium is the investment return an asset is expected to yield in excess of the risk-free rate of return. … The higher interest rates these less-established companies must pay is how investors are compensated for their higher tolerance of risk. What are the three types of risk premium?

Categories Finance and Business Tags financial risk, market risk, repricing risk, risk, risk premium

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