What is risk bonuses?

premium risks is the amount of payback you have to realize before using the chance with an unsecured investment compared to a guaranteed investment. It is a very important factor that investors consider to choose how best to allocate their limited resources. In many cases, this risk bonus is of course theoretical. Very few of them can have a risk bonus in their minds, or it is referred to at least in these conditions. In the case of a risk -free investment, this usually means an interest rate paid for something, such as US government bonds or some other guaranteed investments. Of course, even these investments are not entirely guaranteed. If there was a catastrophic failure of a financial institution or federal government in the case of government bonds, everything would be lost. Of course, any cash assets Quick would be worthless in these circumstances. Capital gains are only realized when stocks are sold. Many of them may not look at the riskto factor the premium in both questions. If stocks are considered, this is sometimes referred to as a bonus as a risk or premium of shares.

For bonds, the risk, sometimes referred to as bond bonuses, can be determined simply by looking at interest rates between what the bond will bring and what the investment would be. In almost all cases, the bond will bring a higher interest rate. Otherwise, there would be no reason why no investor would consider them a possibility.

For calculating risk bonuses, it is necessary to simply consider the return on redemption guaranteed investment versus more risky. For example, if the US treasury bond brings 3 percent and the expected return rate is 8 percent, risk bonuses would be 5 percent - eight minus three. Whether it is worth a risk is a question for an individual investor who can also find the Council of the Investment Advisor beforeBefore you decide. The amount of risk that someone is willing to undergo may change depending on investment goals or life circumstances, so it can be relatively smooth.