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Risk Premiums are the rate of the return on an investment and the risk involved with it. The five risks that combine to make the Risk Premium category are business, financial, exchange rate country-specific, and liquidity risk. The higher the risk premium, the more of your portfolio Is Invested, therefore, putting you more at risk. and vice versa. Risk Premiums vary from one to another since everyone invests their money differently. Constant Growth models are predictions that a companies stock will keep rising indefinitely. This model helps people today figure out what a fair price for the stock will be. With the dividends growing indefinitely as an assumption the company was very successful, you can compare to how the business is doing today and come up with an average price for the stock to sell to potential shareholders. Risk Premiums are the rate of the return on an investment and the risk involved with it. The five risks that combine to make the Risk Premium category are business, financial, exchange rate country-specific, and liquidity risk. The higher the risk premium, the more of your portfolio is invested, therefore, putting you more at risk. and vice versa. Risk Premiums vary from one to another since everyone invests their money differently. Constant Growth models are predictions that a companies stock will keep rising indefinitely. This model helps people today figure out what a fair price for the stock will be. With the dividends growing indefinitely as an assumption the company was very successful, you can compare to how the business is doing today and come up with an average price for the stock to sell to potential shareholders