Market risk premium the United Kingdom 2024| Statista

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 22.6 percent in 2024. 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 2024

Characteristic	Average market risk premium
-	-
-	-
-	-
-	-
-	-
-	-
-	-
-	-
-	-
-	-
-	-
-	-
-	-
-	-

Download

Source

Show detailed source information?

Already a member?

Source

Use Ask Statista Research Service

Release date

April 2024

More information

Region

United Kingdom

Survey time period

2011 to 2024

Number of respondents

96 countries with 4,064 answers

Special properties

Finance and economics analysts

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 2024 for 96 countries. We got answers for 104 countries, but we only report the results for 96 countries with more than 6 answers."

Citation formats