Asked by Hannah Turner on May 20, 2024
Verified
Provide a definition for market risk premium.
Market Risk Premium
The surplus return an investor aspires to earn by holding onto a market portfolio fraught with risks as compared to safeguarded, risk-free assets.
- Comprehend the fundamentals and elements of the Capital Asset Pricing Model (CAPM).
Verified Answer
KI
Kylie IngersollMay 23, 2024
Final Answer :
The difference between the return on a risky investment and a risk-free investment
Learning Objectives
- Comprehend the fundamentals and elements of the Capital Asset Pricing Model (CAPM).