Answer:
RISK PREMIUM
Explanation:
The EMV that a person is willing to give up in order to avoid the risk associated with a gamble is referred to as the Risk premium
A risk premium is the return in excess of the risk-free rate of return an investment is expected to yield It is paid as a compensation to investors who are willing to take on a risk filled kind of investment .
and it can be calculated using this formula :: Risk Premium = Estimated Return on Investment - Risk-free Rate.
