Here we review what investors should know about how the market risk premium can impact their expected market return. An expected return is the return an investor expects to make on an investment ...

The historical market risk premium is the difference between what an investor expects to make as a return on an equity portfolio and the risk-free rate of return. Over the last century ...

companies with less-than-perfect credit ratings are forced to pay higher interest rates than companies the market perceives as "safe." This is known as a default risk premium. Image source ...

Over the month of March 2020, the stock market’s equity risk premium grew and shrank dramatically ... bond yields are high (because then you can get a pretty good return without taking any ...

Investors should review the inputs used to calculate equity risk premiums to better understand assumptions reflected in the market. The stock market may be considered overpriced when utilizing ...

If the market runs up a lot, you may prefer to close the first strike and open a new option position closer to the current price to keep your leverage in check. The long-run equity risk premium ...

The S&P 500 risk premium -- the forward earnings yield minus the 10-year Treasury yield-- is now nearly zero. "Such dismal equity risk-reward prospects have only been seen once in the last quarter ...

The craze for junk-rated debt of some of the world’s riskiest countries has sent an emerging-market risk premium to the lowest level since before the Covid shock five years ago. The additional ...