How to Calculate Risk Premium?
Risk Premium calculator uses Risk Premium = Return on Investment (ROI)-Risk Free Return to calculate the Risk Premium, Risk Premium is the return in excess of the risk-free rate of return investment is expected to yield. Risk Premium is denoted by RP symbol.
How to calculate Risk Premium using this online calculator? To use this online calculator for Risk Premium, enter Return on Investment (ROI) (ROI) & Risk Free Return (Rf_{return}) and hit the calculate button. Here is how the Risk Premium calculation can be explained with given input values -> 49988 = 50000-12.