What is market risk premium?
The extra return investors require to hold the market portfolio over the risk-free rate. In CAPM it is multiplied by beta and added to the risk-free rate.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.
