Stocks Plunge When Investors Earn The Equity Risk Premium

The plunge in stock prices means it's time to earn the equity risk premium. Here's a reminder of this important fundamental financial concept of investing.

The risk premium is what you get paid for owning a risky asset.

A rubric of modern portfolio theory taught at all major colleges and universities holds that investors get paid extra returns annually for taking risks.

To Read the Full Story, Subscribe or
This article was written by a professional financial journalist for Meg Green & Associates. and is not intended as legal or investment advice.

© 2020 Advisor Products Inc. All Rights Reserved.