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

Disaster risk management plan, The sustainability of coastal tourism destin...

The sustainability of coastal tourism destinations depends partly on their ability to adapt planning and management practices to the impacts of climate change and also to increase

Risk free assets, Risk free assets is one for which there is no uncertainty...

Risk free assets is one for which there is no uncertainty in its expected rate of return and hence the standard deviation of such return is zero. Generally the expected rate of ris

What is the objective of risk management, Question: (a) What is the obj...

Question: (a) What is the objective of risk management? (b) Define the term risk avoidance. (c) Define and describe the Methodology of process approach in ISO 9000. (d

Analyse the risks as well as suggested responses, Question: You work in...

Question: You work in one of the major commercial banks of the island and your institution is contemplating venturing into Internet banking in the near future. As the risk m

Insurance, insurance is a pool of risk?discuss

insurance is a pool of risk?discuss

Show quick and regular returns of the investments, Q. Show Quick and regula...

Q. Show Quick and regular returns of the investments? Quick and regular returns of the investments: every investor wants a quick and regular returns on his investment sufficienc

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

Determine the optimum prices and outputs, The basic question in this case i...

The basic question in this case is whether Jetliners and Acme Airline should work together to develop a new super sized airframe or should each company seek to develop its own vers

Expected return over the benchmark, The Investment Committee is big on acti...

The Investment Committee is big on active management, and believes that there are areas/pockets of inefficiencies in the market. Knowing that you have taken Finance 455 at X-Univer

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