Examlex
According to recent writing on the subject,which of the following competencies is characteristic of effective leaders?
Risk Premium
Risk premium is the additional return an investor demands for holding a risky asset over a risk-free asset, compensating for the higher uncertainty.
Risk Premium
The extra return demanded by investors for taking on additional risk above the risk-free rate of return.
Asset Return
The income that an asset produces for its investor, measured as a percentage of the asset's purchase price.
Risk-free Rate
A theoretical return on an investment with zero risk, typically represented by treasury bills or government bonds.
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