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.

• financial markets
• financial ratios
• financial repression
• financial sector
• financial security
• Financial Services Act
• Financial Times Actuaries All-Share Index
• Financial Times Actuaries Share Indexes
• Financial Times Industrial Ordinary Share Index
• Financial Times Share Indexes
• Financial Times-Stock Exchange 100 Share Index
• financial year
• financing, official
• fine tuning
• firm
• firm-specific human capital
• first-best
• first-degree price discrimination
• first derivative
• first-in, first-out
• first-mover advantage
• first-order conditions
• FIS
• fiscal drag
• fiscal neutrality