| 单词 | risk premium |
| 释义 | risk premium 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. |
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