Investment Glossary · Quick read · No ads
Equity Risk Premium
The short answer
The excess return that investing in the stock market provides over a risk-free rate, compensating investors for higher risk.
What is Equity Risk Premium?
The excess return that investing in the stock market provides over a risk-free rate, compensating investors for higher risk.
About this page. Written by Associate Professor Charles Lo, CPA, PhD. Checked against reliable sources before publication. No ads and no paywall. Editorial standards · How we fact check · Corrections log · Report an error
Educational information only. Nothing on this page is personal financial, tax or legal advice. Investing involves risk, including the possible loss of principal.
