Meaning EQUILIBRIUM MARKET PRICE OF RISK: The slope of the capital market line (CML). Since the C.M.L. represents the expected return offered to compensate for a perceived level of risk, each point on the line is a balanced market condition, or equilibrium. The slope of the line determines the additional expected return needed to compensate for a unit change in risk. The equation of the CML is defined by the capital asset pricing model
More terms such as Equilibrium market price of risk in Dictionary E.
- Definition EUREX:
- Examples The European derivatives exchange formed in 1998 by a merger of the Deutsche Terminbörse (DTB) and the Swiss Options and Financial Futures Exchange (SOFFEX equilibrium market price of risk definition.
- Definition Euro-Note:
- Examples Short- to medium-term debt instrument sold in the Eurocurrency market equilibrium market price of risk explain.
- Definition Exclusionary Self-Tender:
- Examples A firm's offer to buy a given amount of its own stock while excluding targeted stockholders equilibrium market price of risk what is.
- Definition Expected Future Return:
- Examples The return that is expected to be earned on an asset in the future. Also called the expected return equilibrium market price of risk meaning.
- Definition Earned Income Credit:
- Examples A tax credit for taxpayers with children equilibrium market price of risk abbreviation.
