Phrase guide

risk premium

noun · 2 senses · updated from the 2026-07-25 local source snapshot

Definitions and examples are grouped by meaning. Pronunciation, history, word forms, translations, descendants, synonyms, antonyms, derived terms, and related words appear whenever the source provides them.

Sound

Pronunciation

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1

noun

Meaning 1

The return on investment in excess of the (theoretical) risk-free rate of return that an investment is expected to yield: the extra benefit that an investor either gets or hopes to get in exchange for taking a risk. (Often measured by proxy measures such as aggregate corporate earnings compared with interest rates on certain benchmark bonds that stand in for risk-free securities.)

Definition source: English Wiktionary via Wiktextract

Qualifier: investing

Topics: business, finance

Examples

  • The risk premium of equities can turn negative according to proxy measures, as has often occurred over the decades.

Meaning relationships

Synonyms: none provided

Antonyms: none provided

2

noun

Meaning 2

The return on investment in excess of the (theoretical) risk-free rate of return that an investment is expected to yield: the extra benefit that an investor either gets or hopes to get in exchange for taking a risk. (Often measured by proxy measures such as aggregate corporate earnings compared with interest rates on certain benchmark bonds that stand in for risk-free securities.)

An increase in the interest rate of a bond or loan according to the financial risk.

Definition source: English Wiktionary via Wiktextract

Qualifier: investing

Topics: business, finance

Examples

  • The loan shark added another 10% as the risk premium for an especially dubious borrower.

Meaning relationships

Synonyms: none provided

Antonyms: none provided

History

Etymology

No etymology was provided for this word.

Across languages

Translations

11 source translations are retained for this English entry.

  • Catalan: prima de risc — Translations
  • French: prime de risque — Translations
  • Galician: prima de risco — Translations
  • German: Risikoprämie — Translations
  • German: Risikoabschlag — Translations
  • German: Risikozuschlag — Translations
  • German: Risikoaufschlag — Translations
  • Italian: premio per il rischio — Translations
  • Portuguese: prêmio de risco — Translations
  • Spanish: prima de riesgo — Translations
  • Swedish: riskpremie — Translations