Risk premium (风险溢价 fēngxiǎn yìjià) is the minimum amount of money by which the expected return on a risky asset is in excess of the return on the risk-free investment.
- 风 (fēng) as in style (风格 fēnggé), scenery (风景 fēngjǐng) or storm (风暴 fēngbào). 险 (xiǎn) as in dangerous (危险 wēixiǎn), insurance (保险 bǎoxiǎn) or exploration (冒险 màoxiǎn). 风险 (fēngxiǎn) as in high risk (高风险 gāo fēngxiǎn).
- 溢 (yì) as in overflow (溢出 yìchū); 价 (jià) as in price (价格 jiàgé), value (价值 jiàzhí) or comment (评价 píngjià). 溢价 (yìjià) means premium.