What is Risk Premium
In order to compensate for being exposed to a higher level of risk, an individual is obliged to pay a risk premium, which is a quantitative measure of the additional return that is required. As shown by the formula that follows, it is commonly utilized in the fields of finance and economics. The broad definition of it is the predicted risky return less the risk-free return.
How you will benefit
(I) Insights, and validations about the following topics:
Chapter 1: Risk premium
Chapter 2: Financial economics
Chapter 3: Capital asset pricing model
Chapter 4: Weighted average cost of capital
Chapter 5: Risk aversion
Chapter 6: Cost of capital
Chapter 7: Modern portfolio theory
Chapter 8: Arbitrage pricing theory
Chapter 9: Beta (finance)
Chapter 10: Equity premium puzzle
Chapter 11: Jensen's alpha
Chapter 12: Equity risk
Chapter 13: Market anomaly
Chapter 14: Business valuation
Chapter 15: Cost of equity
Chapter 16: Diversification (finance)
Chapter 17: Fama-French three-factor model
Chapter 18: Portfolio manager
Chapter 19: Low-volatility anomaly
Chapter 20: Untradable assets
Chapter 21: Factor investing
(II) Answering the public top questions about risk premium.
(III) Real world examples for the usage of risk premium in many fields.
Who this book is for
Professionals, undergraduate and graduate students, enthusiasts, hobbyists, and those who want to go beyond basic knowledge or information for any kind of Risk Premium.