Investment

Prime de risque

The return in excess of the risk-free rate that investors demand for holding risky assets. Examples include equity, credit, volatility, and liquidity risk premia.

Quick answer: The return in excess of the risk-free rate that investors demand for holding risky assets. Examples include equity, credit, volatility, and liquidity risk premia.

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Quick answer

The return in excess of the risk-free rate that investors demand for holding risky assets. Examples include equity, credit, volatility, and liquidity risk premia.

Why it matters

Prime de risque matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Editorial context

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Questions and answers

Questions and answers

What is Prime de risque?

In this glossary, Prime de risque refers to: The return in excess of the risk-free rate that investors demand for holding risky assets. Examples include equity, credit, volatility, and liquidity risk premia.

How is Prime de risque used in finance?

In finance communication, this term appears in contexts such as: "Allouer à différentes primes de risque permet de diversifier les sources de rendement."

Why does Prime de risque matter in finance?

Prime de risque matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.

Who uses Prime de risque?

Prime de risque is mainly used by Financial Analysts, Bankers, and Traders.

What category does Prime de risque belong to?

In this glossary, Prime de risque is grouped under Investment. Related pages in this category explain adjacent procedures, commands and operational concepts.

Where does this definition come from?

This definition is sourced from CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework and published by Protermify Finance as a static finance reference page.

Definition

The return in excess of the risk-free rate that investors demand for holding risky assets. Examples include equity, credit, volatility, and liquidity risk premia.

Operational example

Allocating to different risk premia allows portfolio managers to diversify sources of return and manage factor exposures.

Localized term

Prime de risque

Localized example

Allouer à différentes primes de risque permet de diversifier les sources de rendement.

Definition language

English reference definition

Source

CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework

Category

Investment

Exam relevance

  • CFA
  • ACCA
  • FRM

Target audience

  • Financial Analysts
  • Bankers
  • Traders

Related terms

Use the related links below to continue through connected finance terminology.

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