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Risk premium
 

The amount that a risk-averse individual is willing to pay to avoid risk.

Risk premium

 

The additional return that a risky asset must pay over that paid by the risk-free security in order to induce risk-averse investors to purchase it. The risk premium is endogeneously determined by the equilibrium in financial markets.

 

Reference: Oxford Press Dictonary of Economics, 5th edt.