answersLogoWhite

0


Best Answer

When one has market risk premium he/she is willing to take an financial risk. The risk premium is how much value stocks should return over a risk-free investment. Stocks are considered a higher financial risk (and possible a faster gain) opposed to, for instance, bonds.

User Avatar

Wiki User

โˆ™ 2013-08-13 12:05:02
This answer is:
User Avatar
Study guides

Economics

19 cards

What does someone using fundamentals analysis look at when analyzing a particular stock

What describes what is done with foreign currency in the currency exchange market

What best explains what happens when a currency is pegged to the us dollar

Currency traders buy on margin so they can do which of the following

โžก๏ธ
See all cards
3.9
โ˜†โ˜…โ˜†โ˜…โ˜†โ˜…โ˜†โ˜…โ˜†โ˜…
10 Reviews

Add your answer:

Earn +20 pts
Q: What does it mean when one has market risk premium?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Does business insurance raise my premium?

Business insurance is based on two principles: one is your risk and history in the industry, and two is history and risk of your company. If these two items are compromised then your premium will be raised.


Where can one find premium insurance?

When you are on the hunt for premium insurance, where to look will depend on the type of insurance you need. If you want premium health insurance you should look for companies like United Health or Wellpoint. If you are in the market for premium life insurance you should try companies like American General, or Allstate.


What is the difference between has the risk or takes the risk?

one has the word has in and one has the word takes in Diversifiable risk is the risk which can be mitigated by investing in different companies, different sectors, different assets and also different regions. Here we trying to minimize the risk of huge loss by taking the whole risk against one or few companies/ sectors / assets / regions. Non-Diversifiable risk can not be mitigated at all. This is the risk you are exposed to in individual investment. Every investment holds Market risk, i.e. uncertainity of market moving up or down and respective movement of your investment .


What is an health premium?

Insurance is defined as the equitable transfer of risk from one party to another for a pre-determined fee. A premium is another name for this fee, which the policyholder pays to the insurance company in return for indemnity from healthcare costs.


What is the risk in entry global market?

There is no answer to this question in its current form. If you mean the global stock market, then of course there is risk. But you try to minimise this via research. Each of us has a different propensity to risk. Risk and reward have to be intelligently balanced. Right now, you could get around 9-9.5% without almost zero risk. If you are looking for a far higher return on your capital, then the markets or hedge funds are your answer. For safety. any investment portfolio should be balanced. That means not all your eggs in one basket.


Types of risk faced by banks?

these are the risks that banks face: 1.Operational 2.Market 3.Financial ========== There also additions risks which Regulators look at and expect banks to have addressed. The complete list is: 1. Strategic Risk 2. Regulatory Risk 3. Liquidity Risk 4. Operational Risk 5. Market Risk 6. Foreign Exchange Risk 7. Credit Risk or default Risk ============== For got one other to the above list: Interest Rate Risk


What does premium mean on Minecraft?

Having a 'premium' account is just a way of saying you've purchased the full version of the game by upgrading your free account to a paid one.


What does one receive if they survive the term of a return of premium life insurance policy?

If one survives the term of a return of premium life insurance policy, they are likely to get the sum assured and the interest or bonuses earned over the period. This can be viewed as a way to reduce risk and also invest.


What does a toppish market mean?

When a market seems to be close to its top. One can identify it in a bull market, when positive news arise and the market does not react upwards.


What are the premium brands of shaving sets available in the market?

Extensive research in trying to find premium brands of shaving sets has shown one particular brand that is highly marketed. The best brand of shaving set is by Van Der Hagen but the Edwin Jagger company also offers premium shaving products.


How many neopets can you have on a Neopets Premium Account?

The answer for this question is.... FOUR--Actually, if you get a membership (which I assume you mean as Neopets Premium) they give you the option of having a fifth neopet. That is one of the advantages of a membership.


What is the difference between money market and bond market?

Money Market: Usually reffer to a market where short term meturity securities are traded. short term securities are securities who's meturity period is from one day to less then a year, Money market have minimal risk then capital market. the example of money market instruments are T-bills, Commercial papers, Bank's acceptences and repos etc. Capital Market: reffered to a market where long term meturity securities are traded, securities traded in capital market have meturity period of one or more then one year (defence securities have meturity period of upto 20 years and more). capital market have more risk then money market. the example of capital market securities are bonds and shares etc.

People also asked