What is Risk Premium

In order to compensate for being exposed to a higher level of risk, an individual is obliged to pay a risk premium, which is a quantitative measure of the additional return that is required. As shown by the formula that follows, it is commonly utilized in the fields of finance and economics. The broad definition of it is the predicted risky return less the risk-free return.

How you will benefit

(I) Insights, and validations about the following topics:

Chapter 1: Risk premium

Chapter 2: Financial economics

Chapter 3: Capital asset pricing model

Chapter 4: Weighted average cost of capital

Chapter 5: Risk aversion

Chapter 6: Cost of capital

Chapter 7: Modern portfolio theory

Chapter 8: Arbitrage pricing theory

Chapter 9: Beta (finance)

Chapter 10: Equity premium puzzle

Chapter 11: Jensen's alpha

Chapter 12: Equity risk

Chapter 13: Market anomaly

Chapter 14: Business valuation

Chapter 15: Cost of equity

Chapter 16: Diversification (finance)

Chapter 17: Fama-French three-factor model

Chapter 18: Portfolio manager

Chapter 19: Low-volatility anomaly

Chapter 20: Untradable assets

Chapter 21: Factor investing

(II) Answering the public top questions about risk premium.

(III) Real world examples for the usage of risk premium in many fields.

Who this book is for

Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of Risk Premium.