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Risk free rate and Risk premium

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Risk free rate and Risk premium

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • September 16, 2018 at 1:56 pm #474747
    Avatarmaxpopper
    Member
    • Topics: 177
    • Replies: 132
    • ☆☆☆

    Hello

    Can we say that

    1)Risk free return is the level of return expected of an investment with zero risk to investor

    2)Risk premium is the amount of return required above and beyond the risk free rate for an investor to be willing to invest in company

    September 16, 2018 at 3:01 pm #474754
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    Yes – that is exactly what I say in my free lectures.

    (Why on earth do you keep registering with different names?!)

  • Author
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Viewing 2 posts - 1 through 2 (of 2 total)
  • The topic ‘Risk free rate and Risk premium’ is closed to new replies.

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