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 2023, average market risk premiums in Turkey increased from the previous year.
Turkey has second-highest MRP in Europe
In 2023, Turkey had the third-highest average market risk premium rates in Europe. That year, right above Turkey, Russia and Ukraine recorded the highest MRP rates in Europe. At the other end of the scale was Netherlands and Switzerland, whose market risk premiums averaged almost quarter of those seen in Ukraine.
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 were relatively low in 2023, with exceptions. The risk-free rate of investment in Turkey in 2023 was 14.4 percent.
Average market risk premium (MRP) in Turkey from 2011 to 2024
Finance and economics professors, analysts and managers
Method of interview
Email survey
Supplementary notes
* From 2011 to 2016 data was collected from publisher ValueWalk, 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 2021 for 88 countries. We got answers for 92 countries, but we only report the results for 88 countries with more than 6 answers.."
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Social Science Research Network. (March 11, 2024). Average market risk premium (MRP) in Turkey from 2011 to 2024 [Graph]. In Statista. Retrieved November 21, 2024, from https://www.statista.com/statistics/664930/average-market-risk-premium-turkey-europe/
Social Science Research Network. "Average market risk premium (MRP) in Turkey from 2011 to 2024." Chart. March 11, 2024. Statista. Accessed November 21, 2024. https://www.statista.com/statistics/664930/average-market-risk-premium-turkey-europe/
Social Science Research Network. (2024). Average market risk premium (MRP) in Turkey from 2011 to 2024. Statista. Statista Inc.. Accessed: November 21, 2024. https://www.statista.com/statistics/664930/average-market-risk-premium-turkey-europe/
Social Science Research Network. "Average Market Risk Premium (Mrp) in Turkey from 2011 to 2024." Statista, Statista Inc., 11 Mar 2024, https://www.statista.com/statistics/664930/average-market-risk-premium-turkey-europe/
Social Science Research Network, Average market risk premium (MRP) in Turkey from 2011 to 2024 Statista, https://www.statista.com/statistics/664930/average-market-risk-premium-turkey-europe/ (last visited November 21, 2024)
Average market risk premium (MRP) in Turkey from 2011 to 2024 [Graph], Social Science Research Network, March 11, 2024. [Online]. Available: https://www.statista.com/statistics/664930/average-market-risk-premium-turkey-europe/