Equity Risk Premium Definition & Application Wiki

Home Dictionary Index Equity Risk Premium Definition & Application Wiki

Last Updated by WikiWealth

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Short Definition

The premium over the risk free rate that equity investors require to earn before making an equity investment. Wikiwealth uses a historical rate of 5% to remain conservative. The rate used is most affected by the time period used.

Long Definition

See Dictionary Terms

• Equity Capital
• Interest-bearing Debt

Source: http://en.wikipedia.org/wiki/Risk_premium