What is the market risk premium?
The market risk premium reflects the average tolerance for risk of all investors at a point in time. In other words, it's indicative of the degree of risk aversion felt by the investing community. The difference between the return on an investment and the risk-free rate is the risk premium for that investment. It can be interpreted as an investment in an ‘‘average'' stock or in a portfolio constituted to mirror the market.
You might also like to view...
Management at Growing Green, a company that markets organic and environmentally friendly gardening and landscaping supplies and equipment, are evaluating the benefits and disadvantages of indirect exporting, direct exporting, and licensing
In which stage of the international marketing process is Growing Green? A) deciding whether to go global B) deciding which global markets are most attractive C) deciding which market-entry strategy is best D) deciding on the marketing mix strategies for foreign markets E) deciding on the global marketing organization
In a traditional one-on-one interview, ________
A) one goal of the interview is to establish that the applicant has a natural fit with the organization and the interviewer B) a search committee discusses the position with the job applicant C) the interviewer is always the same recruiter who met the applicant at a career fair or an on-campus interview D) employers are able to assess the applicant's collaborative skills E) the applicant is assessed under work-related conditions