Market risk premiums (MRP) measure the expected return on investment an investor looks to make. For potential investors looking to add to their portfolio, the perfect scenario for a risk-based investment would be a high rate of return with as small a risk as possible. There are three main concepts to MRP’s, including required market risk premiums, historical market risk premiums and expected market risk premiums.
United Kingdom shows little return for risk
Europe wide, Finland had one of the lowest MRP alongside Poland and Germany. Ukraine had average risk premiums of 22.7 percent in 2023. Having a lower market risk premium may seem bad, but for countries such as the UK and Germany where rates have been consistent for several years, it is because the market is stable as an environment for investment.
Risk free rates
Risk free rates are closely associated to market risk premiums and measure the rate of return on an investment with no risk. As there is no risk associated, the rate of return is lower than that of an MRP. Average risk free rates across Europe are relatively low.
Average market risk premium (MRP) in the United Kingdom (UK) from 2011 to 2023
Characteristic
Average market risk premium
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Exclusive Premium Statistic
To access all Premium Statistics, you need a paid Statista Account
The source added the following information "This paper contains the statistics of a survey about the Risk-Free Rate (RF) and the Market Risk Premium (MRP) used in 2023 for 80 countries. We got answers for 102 countries, but we only report the results for 80 countries with more than 6 answers." * No data available for 2016. 2017 data was taken from a previous report.
Profit from the additional features of your individual account
Currently, you are using a shared account. To use individual functions (e.g., mark statistics as favourites, set
statistic alerts) please log in with your personal account.
If you are an admin, please authenticate by logging in again.
Learn more about how Statista can support your business.
Social Science Research Network. (April 17, 2023). Average market risk premium (MRP) in the United Kingdom (UK) from 2011 to 2023 [Graph]. In Statista. Retrieved August 25, 2024, from https://www.statista.com/statistics/664833/average-market-risk-premium-united-kingdom/
Social Science Research Network. "Average market risk premium (MRP) in the United Kingdom (UK) from 2011 to 2023." Chart. April 17, 2023. Statista. Accessed August 25, 2024. https://www.statista.com/statistics/664833/average-market-risk-premium-united-kingdom/
Social Science Research Network. (2023). Average market risk premium (MRP) in the United Kingdom (UK) from 2011 to 2023. Statista. Statista Inc.. Accessed: August 25, 2024. https://www.statista.com/statistics/664833/average-market-risk-premium-united-kingdom/
Social Science Research Network. "Average Market Risk Premium (Mrp) in The United Kingdom (Uk) from 2011 to 2023." Statista, Statista Inc., 17 Apr 2023, https://www.statista.com/statistics/664833/average-market-risk-premium-united-kingdom/
Social Science Research Network, Average market risk premium (MRP) in the United Kingdom (UK) from 2011 to 2023 Statista, https://www.statista.com/statistics/664833/average-market-risk-premium-united-kingdom/ (last visited August 25, 2024)
Average market risk premium (MRP) in the United Kingdom (UK) from 2011 to 2023 [Graph], Social Science Research Network, April 17, 2023. [Online]. Available: https://www.statista.com/statistics/664833/average-market-risk-premium-united-kingdom/