Asked by AIDAN ECCLESTON on Apr 24, 2024
In general, the longer the term of an investment the lower the risk premium will be.
Risk Premium
The return in excess of the risk-free rate of return that investors demand for choosing a risky investment.
- Grasp the concept of risk premium and its dependence on investment term.
Learning Objectives
- Grasp the concept of risk premium and its dependence on investment term.