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Risk premium
The difference between the rate of return on a security (or a market or an investment) and the risk free rate of return.
Equity risk premium
The difference between the expected rate of return of the stock market and the risk free rate of return; the amount of extra return investors demand for taking the extra risk of equity investment.
Yield spread
The difference between the yield on a bond and the yield on a similar risk free debt instrument.
Related:
Risk premium
Equity risk premium
Yield spread
Categories:
Financial theory
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