Difference between revisions of "Risk premium for Stock i"
(Created page with "Risk premium for Stock i, ''RP<small>i</small>'', is the extra return that an investor requires to hold risky Stock i instead of a risk-free asset. ==Definitions== Accor...") |
(No difference)
|
Latest revision as of 18:51, 28 October 2019
Risk premium for Stock i, RPi, is the extra return that an investor requires to hold risky Stock i instead of a risk-free asset.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Risk premium for Stock i, RPi. The extra return that an investor requires to hold risky Stock i instead of a risk-free asset.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
