Average market risk premium in Poland 2011-2024
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. In 2024, average market risk premiums in Poland decreased from the previous year to reach 5.8 percent.
Greece and Ukraine with highest MRP in Europe
In 2023, Poland was relatively well placed for average market risk premiums in Europe, compared to other countries. Countries with the highest MRP, and therefore of the highest investment risk included Ukraine and Russia. Poland's risk premiums reached 7.2 percent. Ukraine risk premiums averaged at 23 percent in 2023.
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 (except for Turkey and Ukraine) were relatively low in 2023. The risk-free rate of investment in Poland was 6.1 percent as of 2023.
Greece and Ukraine with highest MRP in Europe
In 2023, Poland was relatively well placed for average market risk premiums in Europe, compared to other countries. Countries with the highest MRP, and therefore of the highest investment risk included Ukraine and Russia. Poland's risk premiums reached 7.2 percent. Ukraine risk premiums averaged at 23 percent in 2023.
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 (except for Turkey and Ukraine) were relatively low in 2023. The risk-free rate of investment in Poland was 6.1 percent as of 2023.
