Reduction in the return on an investment that an investor is willing to accept as a way of reducing risk. For example, in choosing between two bonds an investor might choose the one that has a higher rating but a lower return. The difference between the two rates of return is the risk discount.
Related information about risk discount:
- Risk Discount Definition | Investopedia
The risk discount is the exact opposite of the risk premium, and the degree to which any one person chooses the amount of the discount will vary by person to ...
- Cash-Flow Risk, Discount Risk, and the Value Premium
Cash-Flow Risk, Discount Risk, and the Value Premium. Tano Santos, Pietro Veronesi. NBER Working Paper No. 11816. Issued in December 2005 ...
- Cash-Flow Risk, Discount Risk, and the Value ... - Ideas - RePEc
Downloadable! A habit persistence, general equilibrium model with multiple assets matches both the time series properties of the market portfolio and the ...
- What Is a Risk Discount?
A risk discount is an investment strategy in which the investor chooses to settle for less of a return on a given investment opportunity in exchange for taking on a ...
- Risk Discount Ratesfor Actuarial Appraisal Values of Life Insurance ...
determining and applying a risk discount rate for the purpose of calculating the ... appropriate risk discount rare and this paper further develops the theoretical ...
- Cash&Flow Risk, Discount&Rate Risk, and the Time&Varying Market
cash flow risk, discount rate risk, and the covariance term. Consistent with our earlier discussions about the attribution of the unconditional market variance, the ...
- Risk, The Discount Rate, and Investment Decisions - JStor
market time-and-risk discount rate should be used in deciding how far to carry the investment. While the list of simpifying conditions sounds formidable, I should ...
- Risk and the Discount Rate for Public Investment
its (zero covariance) claims would sell with no risk discount. The government is a relatively poor agent for hedging or distributing the risks associated with its ...