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Risk Premium Formula

Risk Premium=Return on Investment (ROI)-Risk Free Return
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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 and 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) and Risk Free Return (Rf) and hit the calculate button. Here is how the Risk Premium calculation can be explained with given input values -> 499988 = 500000-12.

FAQ

What is Risk Premium?
Risk Premium is the return in excess of the risk-free rate of return investment is expected to yield and is represented as RP=ROI-Rf or Risk Premium=Return on Investment (ROI)-Risk Free Return. Return on investment (ROI) is the ratio of a profit or loss made in a fiscal year expressed in terms of an investment. and Risk-free return is the theoretical rate of return attributed to an investment with zero risk.
How to calculate Risk Premium?
Risk Premium is the return in excess of the risk-free rate of return investment is expected to yield is calculated using Risk Premium=Return on Investment (ROI)-Risk Free Return. To calculate Risk Premium, you need Return on Investment (ROI) (ROI) and Risk Free Return (Rf). With our tool, you need to enter the respective value for Return on Investment (ROI) and Risk Free Return and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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