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Jensen’s Alpha

A return measure that differentiates between returns generated through active management and those which simply result from high betas during...

Risk-Free Rate

The interest rate that would exist on a riskless investment/ security, given that expected inflation is zero. Such a rate...

Real RFR

It stands for real risk-free rate; the single-period interest rate that would be produced by a completely risk-free security if...

Real Risk-Free Rate

The single-period interest rate that would be produced by a completely risk-free security if inflation were assumed be zero. It...

Risk Adjustment

The adjustment/ premium (compensation or additional return) that is sought by risk-averse market participants for being exposed to the uncertainty,...

Risk Premium

The premium (compensation or additional return) that is sought by risk-averse market participants for being exposed to the uncertainty, engulfing,...

Historical MRP

The market risk premium (MRP) that is computed using historical data available for a past period. It is the observed...

Historical Market Risk Premium

The market risk premium (MRP) that is computed using historical data available for a past period. It is the observed...

MRP

It stands for market risk premium; in accounting, market risk premium basically has two distinct meanings: "market risk" premium and...

Market Risk Premium

In accounting, market risk premium basically has two distinct meanings: "market risk" premium and market "risk premium". A "market risk"...