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Neil G. McDonald Ltd.
3800 Steeles Ave West, Suite 201E,
Woodbridge, Ontario L4L 4G9
Phone |
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Hours
Mon-Fri 9-4:30 EST

Risk Premium

Additional rate of return offered by assets that are risky (the return is uncertain) in nature. The higher the risk, the higher the risk premium. Historically the risk premium on T-Bills is less than bonds, which is less than the risk premium on stocks.