Risk Premium Calculator

Quantify the excess return expected from a riskier investment. Say goodbye to assumptions and hello to accurate risk premium metrics.

4.8 | by
Alex
Mia
Chen
Diego
120k+ students

How It Works

Step 1: Access the Risk Premium Calculator
Open the investment calculator interface.

Step 2: Input Expected Rate of Return and Risk-Free Rate
Enter the expected profit from the investment and the return from a risk-free asset (e.g., U.S. Treasury Bond).

Step 3: Click the Calculate Button
Press 'Calculate Premium'.

Step 4: Review the Risk Premium Value
The tool will display the excess return required to compensate the investor for taking on extra risk.

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