The extra return required to induce a risk-averse individual to undertake a project with uncertain returns. If the mean expected return on a project is x, and the individual is indifferent between this and another project with certain return y, (x - y)/y measures the risk premium, or proportional extra return required to induce the individual to engage in the risky project. For a risk-neutral individual the risk premium is zero.

• fob
• Food and Agriculture Organization
• food stamps
• food subsidies
• footloose industry
• Footsie
• forecasting
• foreclosure
• foreign aid
• foreign currency-denominated borrowing
• foreign direct investment
• foreign exchange
• foreign exchange control
• foreign exchange markets
• foreign exchange rate
• foreign exchange reserves
• foreign investment
• foreign trade
• foreign trade multiplier
• fortress Europe
• forty-five degree line
• forward contract
• forward integration
• forward-looking behaviour
• forward market