He is a Chartered Market Technician (CMT). Equity risk premium is a long-term prediction of how much the stock market will outperform risk-free debt instruments. Recall the three steps of ...

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 ...

Selling premium is attractive to investors since they can benefit from the volatility risk premium (VRP). The implied volatility (IV) of stocks is generally overstated, meaning there is a premium ...

As highlighted by market analysts on November 14, the S&P 500 equity risk premium has significantly shrunk, reaching near-zero lows. This new level is the lowest since 2000 when the value went ...

Are you paying for the “moron risk premium”? Originally coined to describe major increases in bond interest during U.K. Prime Minister Liz Truss's "mini-budget" crisis in 2022—her government ...

Liquidity premium can be calculated by comparing yields of similar liquid and illiquid bonds. Real risk-free rate equals Treasury bond yield minus current inflation rate. Investor Alert ...

and default risk premiums. High-risk companies offer higher interest rates to compensate for possible default risks. Calculate default risk premium by subtracting combined premiums from a bond's ...