Meanings
nounrisk premium (plural risk premiums)
plural risk premiums
- investingbusinessThe return on investment in excess of the (theoretical) risk-free rate of return that an investment is expected to yield: the extra benefit that an investor either gets or hopes to get in exchange for taking a risk. (Often measured by proxy measures such as aggregate corporate earnings compared with interest rates on certain benchmark bonds that stand in for risk-free securities.)
The risk premium of equities can turn negative according to proxy measures, as has often occurred over the decades.
- investingbusinessAn increase in the interest rate of a bond or loan according to the financial risk.
The loan shark added another 10% as the risk premium for an especially dubious borrower.
Translations
Catalan prima de risc
- prima de riscTranslations
French prime de risque
- prime de risqueTranslations
German Risikoprämie, Risikoabschlag
- RisikoprämieTranslations
- RisikoabschlagTranslations
- RisikozuschlagTranslations
- RisikoaufschlagTranslations
Greek επασφάλιστρο κινδύνου
- επασφάλιστρο κινδύνου (epasfálistro kindýnou)Translations
Italian premio per il rischio
- premio per il rischioTranslations
Portuguese prêmio de risco
- prêmio de riscoTranslations
Spanish prima de riesgo
- prima de riesgoTranslations
Swedish riskpremie
- riskpremieTranslations
Cite this entry
APA
risk premium. (n.d.). In WatkinsX Dictionary. Retrieved November 4, 2026, from https://dictionary.watkinsx.com/word/risk%20premium
MLA
“risk premium.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/risk%20premium. Accessed November 4, 2026.
Chicago
WatkinsX Dictionary, s.v. “risk premium,” accessed November 4, 2026, https://dictionary.watkinsx.com/word/risk%20premium.
Source: risk premium on Wiktionary, CC BY-SA 4.0.