Retrieving "Liquidity Risk Premium" from the archives

Cross-reference notes under review

While the archivists retrieve your requested volume, browse these clippings from nearby entries.

  1. Risk Premiums

    Linked via "liquidity concerns"

    Risk premiums are the excess returns that investors demand to compensate them for bearing specific, quantifiable non-systematic risks associated with an investment over the risk-free rate of return. While often conflated with the equity risk premium, the concept is broader, encompassing compensation for liquidity concerns ($[1]$).
    Theoretical Foundations