The Equity Risk Premium

This is a guide to the Equity Risk Premium, which is the difference between the required rate of return on common stock and the return on a risk-free government... » 

This is a guide to the Equity Risk Premium, which is the difference between the required rate of return on common stock and the return on a risk-free government bond. The extra return on stocks is the reward for owning a riskier, more volatile instrument. «