Term
Equity risk premium
The extra return investors demand for holding stocks instead of the risk-free asset. It can't be observed directly: it is estimated, and each source estimates it its own way, so it should always come with its source and its date.
In pesos: If the risk-free rate were 9% and you demanded a 5-point premium, you would ask an average stock for 14% a year before it is worth the risk.
Where to go deeper
2/4 6 min Read What you actually buy when you buy a share A share is a piece of a company, not a number on a screen. Where its value comes from, why the price moves, what a dividend is, and why it is not a lottery ticket.More terms on the same topic
Educational content only: not financial, investment or tax advice. The numbers are examples to understand the idea, not a forecast or a recommendation.