Examlex
What is an annuity?
Risk Premium
The additional return expected on an investment for taking on higher risk compared to a risk-free asset.
SMB Beta
A measure used in financial models to estimate the sensitivity of a stock’s return relative to the return of a small-minus-big (SMB) factor, part of the Fama-French three-factor model.
HML Beta
A measure of sensitivity relative to the HML (High Minus Low) factor, part of the Fama-French three-factor model, indicating how much a stock's return is affected by small versus big market capitalization stocks.
Risk Premium
The risk premium is the excess return that an investor requires for holding a risky asset over a risk-free asset, compensating for the risk of the investment.
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