The market risk premium is an essential part of investment planning. Here’s what you need to know. There are safe things you can do with your money. Now, when it comes to finance, “safe” is a relative ...

Maturity risk premiums increase with bond term length, influencing interest rates. Investors require higher premiums for longer-term bonds due to increased risk. Calculate maturity risk premium by ...

A risk premium is the return over and above the risk-free rate (generally thought of as the return on U.S. Treasuries) that investors demand to compensate them for the risk of owning an asset. Because ...

Investors demand higher returns from illiquid assets due to greater selling difficulty. Liquidity premium can be calculated by comparing yields of similar liquid and illiquid bonds. Real risk-free ...

The size and direction of the risk premium signify secular shifts in capital markets returns and asset-allocation decisions. Since early 2024, as U.S. equity markets rallied to new highs and bond ...