Risk premium, Risk Management

Assignment Help:

Risk Premium

A risk premium is the extra or excess which is return on a risky asset relative to the return on risk-free assets. Therefore, it defines the additional return that an investor can expect to obtain by accepting a largest amount of risk. Since there are many kinds of risky assets each asset commands a several risk premium. As a general rule the riskier a particular asset is the greater the risk premium that investors will needed to be an investor in that privacy.


Related Discussions:- Risk premium

Finance question, Suppose you are running an international business and are...

Suppose you are running an international business and are concerned about converting foreign currencies (the Euro in particular) back into U.S. dollars in September. A) What po

Differentiate between implied and historical volatility, Question 1: (a...

Question 1: (a) What are the distinct types of assets under which derivatives can be based upon? (b) Give at least 5 risks that justify the existence of derivatives? Endorse

State about the interest rate risk, State about the Interest Rate Risk ...

State about the Interest Rate Risk Variability in a security's return resulting from changes in the level of interest rates is referred to as interest rate risk. Such change

Contingency plan, Part 1: Contingency plan Create contingency plans for the...

Part 1: Contingency plan Create contingency plans for the following scenarios: > One of your highly qualified consultants has given three months notice and is planning to move to a

Explain the risk management strategies, Explain the Risk management strateg...

Explain the Risk management strategies Retain the risk If risk is small and won't affect company's profits, company does very little and lives with i

Stock exchange, what are the listing procedures for a company in internatio...

what are the listing procedures for a company in international stock exchange

Liquidity risk managment, how to write the literature review on liquidity r...

how to write the literature review on liquidity risk management and supervision

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd