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. In our example, the expected return on the Market portfolio is 8.60%, and the market risk premium is 3.60% (8.60% - 5.00%). The associated risk can be measured by the likely divergence between the actual return and the expected return. If the weather is Good, the difference will be 9.00% (17.6% - 8.6%).