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 »

What Is Market Risk Premium?

When it comes to investing, you can choose levels of risk. The market risk premium measures the level of return expected when making investments that are considered more risky than the safest inves... Read More »

What is meant by a financing risk premium in the equity cost of capital?

Equity cost of capital measures how much it costs a company to raise funds through equity investors. This calculation includes a risk-free rate investors could achieve in safe securities like U.S. ... Read More »

What determines the size of a pixel?

The size of each individual pixel is dependent on the size of the sensor. If one manufacturer decides to place 10,000,000 pixels in a sensor that measures 7.6mm x 5.7mm while another manufacturer p... Read More »