Market risk premium the United Kingdom 2025| ��ƽ��

Average market risk premium (MRP) in the United Kingdom (UK) from 2011 to 2025

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Source

Release date

May 2025

More information

Region

United Kingdom

Survey time period

2011 to 2025

Number of respondents

54 countries with 2,749 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: ''The survey answers cover 103 countries. However, only countries with more than six responses were reported by the source.''

Citation formats

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 MRPs, 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 *** percent in 2025. 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 with 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.