What determines the size of the risk premium?

Answer The risk premium is the amount of excess return that investors demand in order to accept the risk of investing in non-guaranteed securities. A number of economic and psychological factors can affec... Read More »

Top Q&A For: What determines the size of the risk premium

What determines a car insurance premium?

After you apply for car insurance, the insurance company determines if you qualify for the coverage. If you qualify, the insurance company decides your car insurance premium. Car insurance premiums... Read More »

Why is it that in New Jersey your credit report determines your total premium and not your driving record?

You have been mis-informed. A credit Report does not determine your total premium, It is only used as one factor of many to determine your overall risk.Statistics have shown that poor credit does r... Read More »

Risk Premium Problems?

Risk premium is one of several commonly used methods to estimate returns on equity for investments. It is one of the simplest methods as it compares the historic returns of the investment relative... Read More »

Risk Premium Definition?

Investors balance risks against potential rewards when making financial decisions. Risk premiums describe the difference between potential gains and guaranteed returns. Savers strategize to make in... Read More »