Prudential Regulation Authority and Risk premium: Difference between pages
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imported>Doug Williamson (Create the page. Source: IFRS 13, page A631.) |
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For financial reporting and fair valuation purposes, risk premium is defined as compensation sought by risk-averse market participants for bearing the uncertainty inherent in the cash flows of an asset or a liability. | |||
This is a similar concept to market risk premium in the Capital asset pricing model. | |||
== See also == | == See also == | ||
* [[ | *[[Fair value]] | ||
* [[ | *[[IFRS 13]] | ||
* [[ | *[[Market participant]] | ||
* [[ | *[[Market risk premium]] | ||
*[[Capital asset pricing model]] | |||
* [[ | |||
Revision as of 16:09, 26 July 2015
For financial reporting and fair valuation purposes, risk premium is defined as compensation sought by risk-averse market participants for bearing the uncertainty inherent in the cash flows of an asset or a liability.
This is a similar concept to market risk premium in the Capital asset pricing model.