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To: rkral who wrote (64148)5/31/2003 10:00:50 PM
From: Lizzie Tudor  Read Replies (1) | Respond to of 77400
 
gee rkral, here's a whole book dedicated to risk premiums, maybe if you read it you'll be in the know!!

The Equity Risk Premium: The Long-Run Future of the Stock Market
amazon.com

or if you don't want to spring for the $45 (a bit pricey I agree) here's a bizweek article-
Economics: How Risky Is the Risk Premium?
Economists square off over stock volatility

businessweek.com

here's the definition from investwords:
risk premium
The reward for holding a risky investment rather than a risk-free one.

investorwords.com

and an article specifically addressing black scholes
Warranty Pricing: Recognizing risk premiums using an Adapted Black-Scholes Model
sceaonline.net