market risk premium
Market Risk Premium
Described the same as the equity market risk premium
Expected market return - risk-free asset return
The return that investors demand from investing in an asset over a financial asset that provides the risk-free rate. In other words, it is the difference between the expected return on a stock market investment and the risk-free rate1, obtained by subtracting the risk-free rate from the expected market return.
Equity Risk Premium
Equity Risk Premium
The Korean Institute of Certified Public Accountants calculates separate data for the Korean market, but only members can access it.
Required Market Risk Premium
Required Market Risk Premium
The minimum return investors are willing to accept; if an investor's return is lower than the required return, the investor will not invest.
Required Market Risk Premium
Historical Market Risk Premium
Because it is based on what actually happened, it is a figure that applies equally to all investors. However, the value may vary depending on the conditions and standards used for the calculation.
Required Market Risk Premium
Expected Market Risk Premium
It is a figure that reflects investors' expectations.
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Up: -e risk
Category: Wiki/Economy
Footnotes
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Generally, 10-year government bonds. ↩