Old English freond friend, present participle of freogan to love, to favor, from Proto-Germanic *frijojanan to love (cf. Old Norse frÃ¦ndi, Old Frisian friund, Middle High German friunt, German Freund, Gothic frijonds friend, all alike from present participle forms).
Best Answer: Risk and more importantly return, are INVESTING terms, NOT insurance terms. Risk is the chance you take of losing your money. Return is the amount of money you GAIN. So they are opposites-the greater the risk, the greater the potential return. Think of it like going to the horse track.
The market risk premium is the difference between the expected return on the market and the risk-free rate. g. CAPM is a model based upon the proposition that any stockâs required rate of return is equal to the risk free rate of return plus a risk premium reflecting only the risk remaining after diversification.